The USDJPY pair, currently at 149.382, is steadily making progress towards the 150.00 mark. However, there are concerns about possible intervention from Japan.

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• USD/JPY advances steadily towards 150.00, but intervention threats from Japan loom.

The pair currently trades last at 149.382.

The previous day high was 149.19 while the previous day low was 148.71. The daily 38.2% Fib levels comes at 149.0, expected to provide support. Similarly, the daily 61.8% fib level is at 148.89, expected to provide support.

USD/JPY extended its gains early in the North American session after hitting a daily low of 148.86. However, positive data and high US Treasury bond yields keep the pair from falling below the 149.00 figure despite Japanese authorities’ threats of intervention. The USD/JPY is trading at around 149.40s, gaining 0.27%.

The financial markets narrative continues to be set by expectations of further tightening by the US Federal Reserve. Sentiment remains fragile, though the latest Durable Goods Orders beating estimates are giving a leg-up to the Greenback (USD), which would likely continue to print gains across the board. Durable Goods in August were expected to drop -0.5% but rose 0.2% and crushed last month’s -5.6% plunge. Excluding Transports, orders rose by 0.4% MoM, above estimates and July’s 0.1% increase.

Aside from this, the Fed parade continued with Minnesota’s Fed President Neil Kashkari, saying the risk for higher interest rates remains, but there’s uncertainty at a CNN Interview. He added that consumer spending remains robust and that although the Fed has progressed significantly in inflation, he’s unsure if the Fed is restrictive enough.

On the Japanese front, the Bank of Japan minutes for the July meeting showed that some members felt it was essential to explain that YCC tweaks are not a sign of ending accommodative posture while emphasizing they’re unsure if inflation will be sustainably above the 2% target. Meanwhile, the swaps market has begun to price in a possible rate hike for December and January, with odds at 70% for the former and 85% for the latter.

The daily chart portrays the pair as upward biased, but the uptrend seems overextended, due to intervention threats. However, a decisive break above 150.00 could pave the way for testing last year’s high at 151.94. Nevertheless, if USD/JPY corrects lower, first support would emerge at the Tenkan-Sen at 148.39, followed by the September 7 daily high at 147.87, and the Kijun-Sen at 146.95.

Technical Levels: Supports and Resistances

USDJPY currently trading at 149.5 at the time of writing. Pair opened at 149.06 and is trading with a change of 0.3 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 147.46, 50 SMA 145.14, 100 SMA @ 142.72 and 200 SMA @ 137.78.

The previous day high was 149.19 while the previous day low was 148.71. The daily 38.2% Fib levels comes at 149.0, expected to provide support. Similarly, the daily 61.8% fib level is at 148.89, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 148.78, 148.5, 148.3
• Pivot resistance is noted at 149.26, 149.47, 149.75

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