The USDJPY pair increases to 147.20, rising by 0.43%, following indications from BoJ Governor Ueda about potentially discontinuing negative interest rates.
…
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 climbs to 147.20, up 0.43%, after BoJ Governor Ueda hints at ending negative interest rates.
The pair currently trades last at 147.200.
The previous day high was 147.84 while the previous day low was 145.9. The daily 38.2% Fib levels comes at 146.64, expected to provide support. Similarly, the daily 61.8% fib level is at 147.1, expected to provide support.
The Greenback (USD) stages a comeback against the Japanese Yen (JPY) following hawkish remarks by the Bank of Japan (BoJ) Governor Kazuo Ueda over the weekend, as he spoke on the removal of negative interest rates. Hence, the USD/JPY retreated, but as Tuesday’s North American session began, the pair is exchanging hands at 147.20, gaining 0.43% after hitting a weekly low of 145.89.
A risk-off impulse and firm US Treasury bond yields are backing the US Dollar (USD) ahead of the release of August inflation data in the United States. The US 10-year benchmark note sits at 4.292%, unchanged compared to yesterday, contrary to the American Dollar (USD), as shown by the US Dollar Index (DXY). The DXY, which tracks the buck’s performance against a basket of six peers, prints solid gains of 0.30% at 104.83 after dropping to a four-day low of 104.42.
During the weekend, BoJ Governor Ueda said the bank could end its negative policy rate if inflation sustainably hits its 2% inflation target. After his remarks, the JPY strengthened against most G8 FX currencies, while the 10-year Japanese Government Bond (JGB) yield reached 0.70%.
Nevertheless, most JPY gains have been erased as market participants assessed Ueda’s remarks.
On the US front, the US Bureau of Labor Statistics (BLS) will release August’s inflation data on Wednesday. The Consumer Price Index (CPI) is expected to jump from 3.2% to 3.6% YoY, while core CPI to drop from 4.7% to 4.3%. A higher-than-expected inflation reading would reignite speculations about another rate hike by the US Federal Reserve.
For the Fed’s upcoming meeting on September 21, money market futures expect no change to the Federal Fund Rates (FFR). For the November meeting, investors saw the FFR at around 5.48%, 15 bps above the effective FFR, as shown in the picture below.
Source: Financialsource
In other data, the National Federation of Independent Business (NFIB) revealed that the Small Business Optimism Index fell to 91.3 in August from an eight-month high of 91.9 in July.
From a technical standpoint, Monday’s price action formed a hammer that breached the Tenkan-Sen line but ended the session at around 146.50s. If the USD/JPY achieves a new weekly high above 147.27, further confirmed with a daily close, the pair’s next stop would be the year-to-date (YTD) high of 147.87 before challenging the 148.00 mark. Downside risks would emerge with a daily close below the Tenkan-Sen line at 146.15.
Technical Levels: Supports and Resistances
USDJPY currently trading at 147.21 at the time of writing. Pair opened at 146.58 and is trading with a change of 0.43 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 147.21 |
| 1 | Today Daily Change | 0.63 |
| 2 | Today Daily Change % | 0.43 |
| 3 | Today daily open | 146.58 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 146.32, 50 SMA 143.59, 100 SMA @ 141.3 and 200 SMA @ 137.14.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 146.32 |
| 1 | Daily SMA50 | 143.59 |
| 2 | Daily SMA100 | 141.30 |
| 3 | Daily SMA200 | 137.14 |
The previous day high was 147.84 while the previous day low was 145.9. The daily 38.2% Fib levels comes at 146.64, expected to provide support. Similarly, the daily 61.8% fib level is at 147.1, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 145.71, 144.84, 143.78
- Pivot resistance is noted at 147.65, 148.71, 149.58
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 147.84 |
| Previous Daily Low | 145.90 |
| Previous Weekly High | 147.88 |
| Previous Weekly Low | 146.02 |
| Previous Monthly High | 147.38 |
| Previous Monthly Low | 141.51 |
| Daily Fibonacci 38.2% | 146.64 |
| Daily Fibonacci 61.8% | 147.10 |
| Daily Pivot Point S1 | 145.71 |
| Daily Pivot Point S2 | 144.84 |
| Daily Pivot Point S3 | 143.78 |
| Daily Pivot Point R1 | 147.65 |
| Daily Pivot Point R2 | 148.71 |
| Daily Pivot Point R3 | 149.58 |
[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.
- EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
- EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group
