Investors are analyzing the recent change in policy by the Bank of Japan as the USDJPY currency pair rises above 142.00, reaching 142.345.
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- USD/JPY surpasses 142.00 as investors digest BoJ policy tweak.
The pair currently trades last at 142.345.
The previous day high was 141.18 while the previous day low was 138.07. The daily 38.2% Fib levels comes at 139.99, expected to provide support. Similarly, the daily 61.8% fib level is at 139.26, expected to provide support.
The USD/JPY pair sustains comfortably above the crucial resistance of 142.00 in the European session. The asset picks strength as the impact of a tweak in the interest rate policy by the Bank of Japan (BoJ) fades.
BoJ Governor Kazuo Ueda allowed more flexibility in the Yield Curve Control (YCC) but kept interest rates in the negative territory as the central bank aims to push inflation steadily above 2%. More flexibility to YCC delivered a strong message that the BoJ is building a roadmap for an exit from the ultra-loose policy.
Meanwhile, S&P500 turns positive after recovery losses in London, portraying a significant recovery in the risk appetite of the market participants. US equities were heavily bought on Friday, driven by upbeat demand for technology stocks.
Risk-perceived assets discovered strength as the United States core Personal Consumption Expenditure (PCE) price index softened further. Consumer spending is consistently declining as individuals avoid purchasing big-ticket items due to the higher burden of sticky inflation.
The US Dollar Index (DXY) remains topsy-turvy around 101.80 as investors await the United States Manufacturing PMI for July to be reported by the Institute of Supply Management (ISM). The economic data is expected to continue its eight months contracting spell amid higher interest rates by the Federal Reserve (Fed). US factory activities are expected to land at 46.5, higher than the former release of 46.0.
Technical Levels: Supports and Resistances
USDJPY currently trading at 142.35 at the time of writing. Pair opened at 141.17 and is trading with a change of 0.84 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 142.35 |
| 1 | Today Daily Change | 1.18 |
| 2 | Today Daily Change % | 0.84 |
| 3 | Today daily open | 141.17 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 140.97, 50 SMA 140.96, 100 SMA @ 137.41 and 200 SMA @ 136.7.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 140.97 |
| 1 | Daily SMA50 | 140.96 |
| 2 | Daily SMA100 | 137.41 |
| 3 | Daily SMA200 | 136.70 |
The previous day high was 141.18 while the previous day low was 138.07. The daily 38.2% Fib levels comes at 139.99, expected to provide support. Similarly, the daily 61.8% fib level is at 139.26, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 139.1, 137.02, 135.98
- Pivot resistance is noted at 142.21, 143.26, 145.33
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 141.18 |
| Previous Daily Low | 138.07 |
| Previous Weekly High | 141.82 |
| Previous Weekly Low | 138.07 |
| Previous Monthly High | 145.07 |
| Previous Monthly Low | 138.43 |
| Daily Fibonacci 38.2% | 139.99 |
| Daily Fibonacci 61.8% | 139.26 |
| Daily Pivot Point S1 | 139.10 |
| Daily Pivot Point S2 | 137.02 |
| Daily Pivot Point S3 | 135.98 |
| Daily Pivot Point R1 | 142.21 |
| Daily Pivot Point R2 | 143.26 |
| Daily Pivot Point R3 | 145.33 |
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