The USDJPY pair remains stable, slightly below its peak level reached in November 2022, which was observed on Friday.
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- USD/JPY holds steady just below its highest level since November 2022 touched on Friday.
The pair currently trades last at 146.511.
The previous day high was 146.64 while the previous day low was 145.72. The daily 38.2% Fib levels comes at 146.29, expected to provide support. Similarly, the daily 61.8% fib level is at 146.07, expected to provide support.
The USD/JPY pair kicks off the new week on a subdued note and oscillates in a narrow trading band around mid-146.00s through the Asian session, just below its highest level since November 2022 touched on Friday.
The US Dollar (USD) consolidates its recent strong gains to a nearly three-month high and remains supported by Federal Reserve (Fed) Chair Jerome Powell’s hawkish remarks, which, in turn, is seen acting as a tailwind for the USD/JPY pair. In a keynote address at the Jackson Hole Symposium, Powell said that the US central bank may need to raise interest rates further to cool still-too-high inflation and added that policymakers would proceed carefully as they decide whether to tighten further or to hold the policy rate constant. The comments cemented market expectations for one more 25 bps lift-off by the end of this year and remain supportive of elevated US Treasury bond yields, underpinning the Greenback.
In contrast, the Bank of Japan (BoJ) Governor Kazuo Ueda said that the underlying inflation in Japan remains a bit below the 2% target and the central bank will stick to current ultra-easy monetary policy settings. Ueda added that inflation is expected to decline from here. This comes after data released on Friday showed that consumer prices in Tokyo – Japan’s capital city – grew at a slower-than-expected pace in August and ensured that the BoJ may keep the status quo until next summer. The divergence Fed-BoJ policy outlook turns out to be another factor lending support to the USD/JPY pair, though intervention fears hold back bullish traders from placing fresh bets and capping the upside, at least for now.
Nevertheless, the aforementioned fundamental backdrop suggests that the path of least resistance for spot prices is to the upside. Hence, any meaningful corrective decline might still be seen as a buying opportunity and is more likely to remain cushioned. Moving ahead, there isn’t any relevant market-moving economic data due for release from the US on Monday, leaving the USD at the mercy of the US bond yields. This, in turn, might provide some impetus to the USD/JPY pair ahead of this week’s important US macro data scheduled at the beginning of a new month, including the closely-watched monthly employment details – popularly known as the NFP report on Friday.
Technical Levels: Supports and Resistances
USDJPY currently trading at 146.47 at the time of writing. Pair opened at 146.43 and is trading with a change of 0.03 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 146.47 |
| 1 | Today Daily Change | 0.04 |
| 2 | Today Daily Change % | 0.03 |
| 3 | Today daily open | 146.43 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 144.53, 50 SMA 142.86, 100 SMA @ 139.89 and 200 SMA @ 136.68.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 144.53 |
| 1 | Daily SMA50 | 142.86 |
| 2 | Daily SMA100 | 139.89 |
| 3 | Daily SMA200 | 136.68 |
The previous day high was 146.64 while the previous day low was 145.72. The daily 38.2% Fib levels comes at 146.29, expected to provide support. Similarly, the daily 61.8% fib level is at 146.07, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 145.89, 145.35, 144.98
- Pivot resistance is noted at 146.8, 147.18, 147.71
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 146.64 |
| Previous Daily Low | 145.72 |
| Previous Weekly High | 146.64 |
| Previous Weekly Low | 144.54 |
| Previous Monthly High | 144.91 |
| Previous Monthly Low | 137.24 |
| Daily Fibonacci 38.2% | 146.29 |
| Daily Fibonacci 61.8% | 146.07 |
| Daily Pivot Point S1 | 145.89 |
| Daily Pivot Point S2 | 145.35 |
| Daily Pivot Point S3 | 144.98 |
| Daily Pivot Point R1 | 146.80 |
| Daily Pivot Point R2 | 147.18 |
| Daily Pivot Point R3 | 147.71 |
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