The USDJPY pair at 145.425 has regained the losses of the past two days following positive US Initial Jobless Claims data.

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• USD/JPY recovers two-day losses after upbeat US Initial Jobless Claims.

The pair currently trades last at 145.425.

The previous day high was 145.88 while the previous day low was 144.93. The daily 38.2% Fib levels comes at 145.29, expected to provide support. Similarly, the daily 61.8% fib level is at 145.51, expected to provide resistance.

USD/JPY snaps a two-day losing streak, hovering around 145.40 during the Asian session on Monday. The USD/JPY pair cheers employment and manufacturing survey data. However, market participants are currently in search of additional cues that could provide them with a clearer understanding of the US Federal Reserve’s (Fed) direction regarding monetary policy tightening.

The Federal Open Market Committee’s (FOMC) minutes of the July meeting disclosed a difference of opinions among Fed members concerning interest rate hikes. While certain members expected that higher interest rates could lead to a potential economic contraction, the majority of policymakers kept committed to reducing inflation and reaching the 2% target.

Additionally, traders could speculate on the potential intervention by Japanese authorities to protect the Japanese currency from further appreciation against the greenback. Such a step could impact the price movement of the USD/JPY pair, influencing its overall price action.

As the People’s Bank of China (PBoC) cut its one-year benchmark lending rate by 10 basis points (bps) on Monday, seeking the credit demand to be encouraged. Worsening property slump and low consumer spending have raised concerns over China’s recovery, which could lead to more policy stimulus by the Chinese authorities. This development could provide support to stem the currency of export-dependent Japan.

Furthermore, the annual Jackson Hole Symposium during the week will be a focal point of interest. During this event, central bankers, policy experts, and academics will come together to extensively analyze the worldwide economic outlook, with a specific focus on addressing the prevailing inflationary situation. Market participants will closely monitor upcoming US data releases during the week, namely Home Sales and the preliminary S&P Global PMI surveys for August along with Japan’s Consumer Price Index (CPI).

Technical Levels: Supports and Resistances

USDJPY currently trading at 145.46 at the time of writing. Pair opened at 145.4 and is trading with a change of 0.04 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 143.23, 50 SMA 142.32, 100 SMA @ 139.19 and 200 SMA @ 136.53.

The previous day high was 145.88 while the previous day low was 144.93. The daily 38.2% Fib levels comes at 145.29, expected to provide support. Similarly, the daily 61.8% fib level is at 145.51, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 144.93, 144.45, 143.98
• Pivot resistance is noted at 145.87, 146.35, 146.82

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