The USDJPY pair reaches a new high for the day at a rate of 143.302, continuing its upward movement since the start of the week.

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• USD/JPY refreshes intraday high while extending week-start rebound.

The pair currently trades last at 143.302.

The previous day high was 142.59 while the previous day low was 141.51. The daily 38.2% Fib levels comes at 142.18, expected to provide support. Similarly, the daily 61.8% fib level is at 141.92, expected to provide support.

USD/JPY remains on the front foot for the second consecutive day as it takes the bids to refresh intraday high near 143.40 during early Tuesday. In doing so, the Yen pair justifies the market’s latest dovish concerns about the Bank of Japan (BoJ), backed by downbeat Japan real wage data for June. With this, the risk-barometer pair ignores sluggish yields as the US Dollar extends the previous day’s recovery amid cautious optimism in the markets.

Japan’s Labor Cash Earnings came in better-than-forecast for June but the real wages were downbeat enough to defend the dovish bias about the BoJ. That said, Japan’s inflation-adjusted real wages dropped for the 15th consecutive month in June to 1.6% YoY versus 0.9% prior.

On Monday, the Bank of Japan’s (BoJ) Summary of Opinions for the July meeting showed that one member said the achievement of 2% inflation in a sustainable and stable manner seems to have clearly come in sight. The news joins signals of tweaking the Yield Curve Control (YCC) policy with greater care to weigh on the JPY amid the dovish BoJ concerns.

On the other hand, the US Dollar Index (DXY) manages to extend the week-start rebound above 102.00 despite downbeat yields. That said, the US 10-year and two-year Treasury bond yields remain pressured around 4.06% and 4.76% by the press time.

After witnessing unimpressive US jobs report, Fed Governor Michelle Bowman said that additional rate increases will likely be needed to lower inflation back to target. On the contrary, New York Fed President John C. Williams said he expects that interest rates could begin to come down next year. Fed’s Williams also conveyed hopes of witnessing a slightly higher unemployment rate as the economy cooled.

It should be noted that the bearish bias about the Eurozone and China also underpins the US Dollar and propel the USD/JPY pair amid a sluggish session ahead of Chinese and the US trade balance data.

USD/JPY remains on the front foot for the second consecutive day as it takes the bids to refresh intraday high near 143.40 during early Tuesday. In doing so, the Yen pair justifies the market’s latest dovish concerns about the Bank of Japan (BoJ), backed by downbeat Japanese real wage data for June. With this, the risk-barometer pair ignores sluggish yields as the US Dollar extends the previous day’s recovery amid cautious optimism in the markets.

Japan’s Labor Cash Earnings came in better-than-forecast for June but the real wages were downbeat enough to defend the dovish bias about the BoJ. That said, Japan’s inflation-adjusted real wages dropped for the 15th consecutive month in June to 1.6% YoY versus 0.9% prior.

On Monday, the Bank of Japan’s (BoJ) Summary of Opinions for the July meeting showed that one member said the achievement of 2% inflation in a sustainable and stable manner seems to have clearly come in sight. The news joins signals of tweaking the Yield Curve Control (YCC) policy with greater care to weigh on the JPY amid the dovish BoJ concerns.

On the other hand, the US Dollar Index (DXY) manages to extend the week-start rebound above 102.00 despite downbeat yields. That said, the US 10-year and two-year Treasury bond yields remain pressured around 4.06% and 4.76% by the press time.

After witnessing an unimpressive US jobs report, Fed Governor Michelle Bowman said that additional rate increases will likely be needed to lower inflation back to target. On the contrary, New York Fed President John C. Williams said he expects that interest rates could begin to come down next year. Fed’s Williams also conveyed hopes of witnessing a slightly higher unemployment rate as the economy cooled.

It should be noted that the bearish bias about the Eurozone and China also underpins the US Dollar and propel the USD/JPY pair amid a sluggish session ahead of Chinese and the US trade balance data.

A daily closing beyond the five-week-old descending resistance line, around 143.20 by the press time, becomes necessary for the USD/JPY bulls to keep the reins.

Technical Levels: Supports and Resistances

USDJPY currently trading at 143.3 at the time of writing. Pair opened at 142.5 and is trading with a change of 0.56% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 140.69, 50 SMA 141.32, 100 SMA @ 138.0 and 200 SMA @ 136.55.

The previous day high was 142.59 while the previous day low was 141.51. The daily 38.2% Fib levels comes at 142.18, expected to provide support. Similarly, the daily 61.8% fib level is at 141.92, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 141.81, 141.13, 140.74
• Pivot resistance is noted at 142.89, 143.27, 143.96

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