On Thursday, the currency pair USD/JPY at 140.341 is garnering interest from a few buyers and appears to be seeking to gain momentum from the rebound that took place during the latter part of the previous day.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• USD/JPY attracts some buyers on Thursday and looks to build on the previous day’s late rebound.

The pair currently trades last at 140.341.

The previous day high was 140.28 while the previous day low was 139.28. The daily 38.2% Fib levels comes at 139.67, expected to provide support. Similarly, the daily 61.8% fib level is at 139.9, expected to provide support.

The USD/JPY pair edges higher during the Asian session on Thursday and looks to build on the previous day’s late rebound of over 70 pips from the 139.30-139.25 region. The pair is currently placed just above the 140.00 psychological mark, flirting with the top end of a familiar trading range held over the past three weeks or so.

The US Dollar (USD) now seems to have stabilized just above a one-month low touched the previous day, which, in turn, is seen as a key factor lending support to the USD/JPY pair. The USD uptick comes on the back of the Federal Reserve’s (Fed) hawkish outlook and the intent to resume the rate-hiking cycle. It is worth recalling that the US central bank, as anticipated, held interest rates steady at the end of a two-day policy meeting on Wednesday, but signalled that borrowing costs will increase by another 50 bps by end-December.

In the post-meeting press conference, Fed Chair Jerome Powell described US growth and the job market as holding up better than expected. Powell added that the pause was out of caution, to allow the Fed to gather more information before determining if rates do need to rise again. Nevertheless, the markets were quick to react and are now pricing in a greater chance of another 25 bps lift-off at the July FOMC meeting, which, in turn, is seen lending some support to the Greenback and acting as a tailwind for the USD/JPY pair.

In contrast, the Bank of Japan (BoJ) is expected to stick to its dovish stance to support the economy and ensure that the recent positive signs are sustained. The bets were reaffirmed by BoJ Deputy Governor Masazumi Wakatabe earlier this week, saying that there are overwhelming cases for the continuation of the ultra-easy monetary policy measures. This marks a big divergence in comparison to the US central bank and turns out to be another factor that assists the USD/JPY pair to attract some buyers and tick higher on Thursday.

Any further upside, however, seems limited as traders might now prefer to move to the sidelines ahead of the BoJ monetary policy meeting on Friday. Nevertheless, the fundamental backdrop favours bullish traders and suggests that the path of least resistance for the USD/JPY pair is to the upside. Market participants now look to the US economic docket – featuring monthly Retail Sales, the usual Weekly Initial Jobless Claims, Empire State Manufacturing Index, Philly Fed Manufacturing Index and Industrial Production – for a fresh impetus.

Technical Levels: Supports and Resistances

USDJPY currently trading at 140.19 at the time of writing. Pair opened at 140.06 and is trading with a change of 0.09 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 139.49, 50 SMA 136.54, 100 SMA @ 134.79 and 200 SMA @ 137.26.

The previous day high was 140.28 while the previous day low was 139.28. The daily 38.2% Fib levels comes at 139.67, expected to provide support. Similarly, the daily 61.8% fib level is at 139.9, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 139.46, 138.87, 138.46
• Pivot resistance is noted at 140.47, 140.88, 141.47

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group