On Tuesday, the USDJPY currency pair remains within a narrow range just above the 141.45 level.
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- USD/JPY consolidates in a tight range above 141.45 on Tuesday.
The pair currently trades last at 141.459.
The previous day high was 141.82 while the previous day low was 140.74. The daily 38.2% Fib levels comes at 141.15, expected to provide support. Similarly, the daily 61.8% fib level is at 141.41, expected to provide support.
The USD/JPY pair oscillates in a narrow range between 141.20 and 141.60 heading into the European session on Tuesday. The major pair currently trades around 141.45, down 0.01% for the day. Market participants prefer to wait to be sidelined ahead of the Federal Reserve’s (Fed) and the Bank of Japan’s (BoJ) interest rate decisions later this week.
On Monday, the preliminary S&P Global US Manufacturing PMI data came in higher than anticipated at 49, above market expectations of 46.4 and the previous reading of 46.3 in June, while the Services PMI declined to 52.4 from 54.4. The US S&P Global Composite PMI fell to 52 from 53.2 in June.
Apart from the mixed US PMI figure, the data released last week indicated that inflationary pressure is easing and the labor market is tight. These data have led some to speculate that the Fed is about to end its tightening monetary policy after the July meeting.
The FOMC meeting is widely expected to raise its benchmark rate by another quarter-point on Wednesday. It is widely anticipated that the Fed will increase interest rates by 25 basis points (bps) to 5.25–5.50%. However, Fed Chairman Jerome Powell’s press conference on Wednesday will hint at some clues about the possibility of interest rate guidance for the entire year. A hawkish stance from the Fed could trigger the US Dollar against the Japanese Yen.
Across the pond, the Bank of Japan (BoJ) will announce its monetary policy on Friday. BoJ Governor Kazuo Ueda put an end to speculation of a Yield Control Curve policy change and said that there was still some way to go before reaching the 2% inflation target. Those comments indicate that Japanese policymakers are expected to maintain a dovish policy stance in order to keep inflation steady above 2%. Additionally, BoJ policymakers prefer looking at more data to ensure wages and inflation continue to rise before modifying policy.
The monetary policy divergence between the BoJ and Fed might exert pressure on the Japanese Yen against its major rivals and could be a headwind for the USD/JPY pair. Market participants will monitor the FOMC and BoJ meetings scheduled for Wednesday and Friday, respectively. This key event could trigger volatility across financial markets.
Later in the day, US CB Consumer Confidence will be due in the North American session. The Japanese Tokyo Core CPI YoY, US Advance GDP QoQ, and the Fed’s preferred measure of inflation, the core Personal Consumption Expenditure (PCE) Price Index MoM, will be released later this week. Traders will take cues from the data and find opportunities around the USD/JPY pair.
Technical Levels: Supports and Resistances
USDJPY currently trading at 141.49 at the time of writing. Pair opened at 141.48 and is trading with a change of 0.01 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 141.49 |
| 1 | Today Daily Change | 0.01 |
| 2 | Today Daily Change % | 0.01 |
| 3 | Today daily open | 141.48 |
The pair is trading below its 20 Daily moving average @ 141.76, above its 50 Daily moving average @ 140.74 , above its 100 Daily moving average @ 137.25 and above its 200 Daily moving average @ 136.88
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 141.76 |
| 1 | Daily SMA50 | 140.74 |
| 2 | Daily SMA100 | 137.25 |
| 3 | Daily SMA200 | 136.88 |
The previous day high was 141.82 while the previous day low was 140.74. The daily 38.2% Fib levels comes at 141.15, expected to provide support. Similarly, the daily 61.8% fib level is at 141.41, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 140.88, 140.27, 139.8
- Pivot resistance is noted at 141.95, 142.42, 143.02
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 141.82 |
| Previous Daily Low | 140.74 |
| Previous Weekly High | 141.96 |
| Previous Weekly Low | 137.68 |
| Previous Monthly High | 145.07 |
| Previous Monthly Low | 138.43 |
| Daily Fibonacci 38.2% | 141.15 |
| Daily Fibonacci 61.8% | 141.41 |
| Daily Pivot Point S1 | 140.88 |
| Daily Pivot Point S2 | 140.27 |
| Daily Pivot Point S3 | 139.80 |
| Daily Pivot Point R1 | 141.95 |
| Daily Pivot Point R2 | 142.42 |
| Daily Pivot Point R3 | 143.02 |
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