The USDJPY pair starts the new week with a calm tone and is affected by a mix of influences.

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• USD/JPY kicks off the new week on a subdued note and is influenced by a combination of factors.

The pair currently trades last at 145.179.

The previous day high was 145.88 while the previous day low was 144.93. The daily 38.2% Fib levels comes at 145.29, expected to provide resistance. Similarly, the daily 61.8% fib level is at 145.51, expected to provide resistance.

The USD/JPY pair remains on the defensive for the third straight day on Monday, albeit manages to hold its neck above the 145.00 psychological mark through the Asian session.

Speculations that Japanese authorities might intervene in the foreign exchange market to prop up the domestic currency, along with looming recession risks, continue to lend some support to the safe-haven Japanese Yen (JPY). This, along with subdued US Dollar (USD) price action, is seen as a key factor acting as a headwind for the USD/JPY pair. The downside, however, seems limited, at least for the time being, as traders seem reluctant to place aggressive bets and prefer to wait for fresh cues about the Federal Reserve’s (Fed) future rate hike path.

In fact, the US central bank is anticipated to pause its rate-hiking cycle in September, though the markets have been pricing in the possibility of one more 25 bps lift-off by the end of this year. In fact, the minutes of the July 25-26 FOMC meeting indicated that policymakers continued to prioritize the battle against inflation. Moreover, the incoming stronger US macro data pointed to an extremely resilient economy and should allow the Fed to stick to its hawkish stance. This remains supportive of elevated US Treasury bond yield and favours the USD bulls.

Investors, however, prefer to wait on the sidelines ahead of the crucial Jackson Hole Symposium later this week, where comments by central bankers might infuse significant volatility in the markets and provide some meaningful impetus to the USD/JPY pair. In the meantime, a more dovish stance adopted by the Bank of Japan (BoJ), which is the only central bank in the world to maintain negative interest rates, should undermine the JPY and lend support to the USD/JPY pair, warranting caution before positioning for an extension of the recent pullback from the YTD peak.

Technical Levels: Supports and Resistances

USDJPY currently trading at 145.24 at the time of writing. Pair opened at 145.4 and is trading with a change of -0.11 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 143.23, 50 SMA 142.32, 100 SMA @ 139.19 and 200 SMA @ 136.53.

The previous day high was 145.88 while the previous day low was 144.93. The daily 38.2% Fib levels comes at 145.29, expected to provide resistance. Similarly, the daily 61.8% fib level is at 145.51, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 144.93, 144.45, 143.98
• Pivot resistance is noted at 145.87, 146.35, 146.82

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