The USDJPY pair, which is currently at a rate of 147.304, has a favorable tendency for the second consecutive day. However, it is not showing any sustained progress.

…
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 trades with a positive bias for the second straight day, albeit lacks any follow-through.

The pair currently trades last at 147.304.

The previous day high was 147.24 while the previous day low was 146.44. The daily 38.2% Fib levels comes at 146.93, expected to provide support. Similarly, the daily 61.8% fib level is at 146.74, expected to provide support.

The USD/JPY pair attracts some buying for the second successive day and trades near the top end of its weekly range, around the 147.20-147.25 region during the Asian session on Wednesday.

Despite Bank of Japan (BoJ) Governor Kazuo Ueda’s hawkish remarks over the weekend, market participants seem convinced that the Japanese central bank will stick to its ultra-easy monetary policy settings. This, in turn, is seen undermining the Japanese Yen (JPY) and acting as a tailwind for the USD/JPY pair. In an interview with Yomiuri newspaper published on Saturday, Ueda said that ending negative interest rates is among the options available if the BoJ becomes confident that prices and wages will keep going up sustainably. Japan’s ruling Liberal Democratic Party’s (LDP) Upper House secretary-general, Hiroshige Seko, however, signalled his preference for an ultra-loose monetary policy. Seko added that the BoJ Gov Ueda had said that exit from the easy policy would be after achieving the 2% inflation target.

Furthermore, data released this Wednesday showed that Japan’s annual wholesale inflation slowed in August for the eighth straight month. In fact, the Japanese Producer Price Index (PPI) decelerated in line with market expectations, to the 3.2% YoY rate during the reported month, from a downwardly revised 3.4% rise registered in July. The data ensures that the BoJ will maintain the status quo until next summer, which continues to lend some support to the USD/JPY pair. The upside, however, remains capped in the wake of subdued US Dollar (USD) price action ahead of the crucial US consumer inflation figures, which will influence the Federal Reserve’s (Fed) future rate hike.

Any signs of sticky inflation will reaffirm market bets for one more 25 bps lift-off by the end of this year and trigger a fresh leg up for the USD. The market reaction to a softer US CPI print, however, is more likely to be limited on the back of the divergent Fed-BoJ monetary policy stance. This, in turn, suggests that the path of least resistance for the USD/JPY pair is to the upside and any corrective decline might still be seen as a buying opportunity.

Technical Levels: Supports and Resistances

USDJPY currently trading at 147.18 at the time of writing. Pair opened at 147.08 and is trading with a change of 0.07 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 146.4, 50 SMA 143.64, 100 SMA @ 141.43 and 200 SMA @ 137.19.

The previous day high was 147.24 while the previous day low was 146.44. The daily 38.2% Fib levels comes at 146.93, expected to provide support. Similarly, the daily 61.8% fib level is at 146.74, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 146.6, 146.12, 145.81
• Pivot resistance is noted at 147.4, 147.72, 148.2

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...