The USDJPY pair is currently trading at 145.60, decreasing by 0.42%. Despite positive US data, the pair failed to improve. The DXY index rose by 0.51% to 103.718 but was unable to support the USDJPY pair.
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- USD/JPY trades at 145.60, down 0.42%, as positive US data fails to lift the pair; DXY advances 0.51% to 103.718 but can’t buoy USD/JPY.
The pair currently trades last at 145.601.
The previous day high was 146.54 while the previous day low was 145.56. The daily 38.2% Fib levels comes at 146.16, expected to provide resistance. Similarly, the daily 61.8% fib level is at 145.93, expected to provide resistance.
The Greenback (USD) prints losses against the Japanese Yen (JPY) after reaching a daily high of 146.22, back below 146.00. Data from the United States (US) came better than expected but failed to bring the USD/JPY to life. The pair is trading at 145.60, down 0.42%
A busy weekly economic agenda keeps most US Dollar pegged currency pairs trading volatile. Following Tuesday and Wednesday’s session, the buck was under a lot of stress. However, it regained some of its composure against most G10 FX currencies, except for the Japanese Yen.
The US Commerce Department revealed that the US Federal Reserve’s (Fed) preferred gauge for inflation, the Core Personal Consumption Expenditure (PCE), came as expected, climbing 4.2% YoY and 0.2% MoM as both figures aligned with the street’s forecasts. Regarding headline inflation, PCE remained unchanged at 3.3% YoY and 0.2%.
Other data showed that Initial Jobless Claims for the week ending August 26 came at 228K, below its forecast of 235K, according to the US Department of Labor. This, is contrary to the latest jobs data released, which pointed out the labor market was losing steam.
Today’s data added to past jobs releases in the US, alongside month-end flows, underpin the US Dollar (USD), which reached a bottom and is climbing according to the US Dollar Index (DXY). The DXY, an index that tracks a basket of six currencies’ performance vs. the USD, advances 0.51%, up at 103.718.
Even though economic growth has lost a step, it remains above the prior estimate of 2%, at 2.1% in the second quarter. That, alongside the US Commerce Department saying that consumer spending remains steady, jumping 0.8% in July, could keep the Fed in check. The CME FedWatch Tool, which depicts traders’ beliefs about increasing borrowing costs in the US, portrays that the Fed will keep rates unchanged at the September meeting. However, for November, the odds remain at 44.1% for a 25 bps increase.
In the meantime, Atlanta’s Fed President Raphael Bostic said the policy was appropriately restrictive to bring inflation towards the US central bank’s 2% target over a “reasonable” period.
On the Japanese front, Bank of Japan (BoJ) policymakers split between seeking a normalization of monetary policy and continued stimulus. BoJ’s board member Toyoaki Nakamura said it’s premature to tighten monetary conditions, as high import prices have driven inflation. He added that once the “deflationary mindset” is eradicated, the BoJ won’t need the Yield Curve Control (YCC).
Data-wise, Japan’s retail sales grew higher than the 5.4% YoY expected and rose by 6.8% in July, while Industrial Production plunged -2.4%, disappointing investors, which were expected a contraction of -1.4%.
The pair remains upward biased despite falling below the Tenkan-Sen, which has been recovered by buyers early in Thursday’s session. Even though the bulls are in charge, the USD/JPY must climb above yesterday’s high of 146.53 to pave the way for further upside, eyeing the year-to-date (YTD) high of 147.37. Otherwise, downside risks emerge below 145.55, which, once cleared, the major can dive and test the August 23 swing low of 144.54.
Technical Levels: Supports and Resistances
USDJPY currently trading at 145.58 at the time of writing. Pair opened at 146.24 and is trading with a change of -0.45 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 145.58 |
| 1 | Today Daily Change | -0.66 |
| 2 | Today Daily Change % | -0.45 |
| 3 | Today daily open | 146.24 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 145.01, 50 SMA 143.13, 100 SMA @ 140.27 and 200 SMA @ 136.76.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 145.01 |
| 1 | Daily SMA50 | 143.13 |
| 2 | Daily SMA100 | 140.27 |
| 3 | Daily SMA200 | 136.76 |
The previous day high was 146.54 while the previous day low was 145.56. The daily 38.2% Fib levels comes at 146.16, expected to provide resistance. Similarly, the daily 61.8% fib level is at 145.93, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 145.69, 145.13, 144.71
- Pivot resistance is noted at 146.67, 147.09, 147.65
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 146.54 |
| Previous Daily Low | 145.56 |
| Previous Weekly High | 146.64 |
| Previous Weekly Low | 144.54 |
| Previous Monthly High | 144.91 |
| Previous Monthly Low | 137.24 |
| Daily Fibonacci 38.2% | 146.16 |
| Daily Fibonacci 61.8% | 145.93 |
| Daily Pivot Point S1 | 145.69 |
| Daily Pivot Point S2 | 145.13 |
| Daily Pivot Point S3 | 144.71 |
| Daily Pivot Point R1 | 146.67 |
| Daily Pivot Point R2 | 147.09 |
| Daily Pivot Point R3 | 147.65 |
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