Despite the increasing likelihood of intervention by the Bank of Japan (BoJ) as a result of highly unpredictable movements, the USDJPY currency pair remains supported near 148.50.

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• USD/JPY finds support near 148.50 despite rising odds of BoJ’s intervention due to excessive volatile moves.

The pair currently trades last at 149.076.

The previous day high was 149.64 while the previous day low was 149.15. The daily 38.2% Fib levels comes at 149.33, expected to provide resistance. Similarly, the daily 61.8% fib level is at 149.45, expected to provide resistance.

The USD/JPY pair attracts bids near 148.50 and rebounds strongly in the European session. The asset finds cushion despite hopes of a stealth intervention by the Bank of Japan (BoJ) in the FX domain to support the Japanese Yen against excessive volatility.

Unlike other developed economies, the Japanese Yen is struggling for a firm footing despite a correction in the US Dollar. The Japanese Yen fails to find support as the BoJ continues to support an easy monetary policy until the achievement of the 2% inflation target. This week, BoJ Governor Kazuo Ueda cited that it would be premature to discuss an exit from the ultra-loose monetary policy as inflation above 2% is not governed by wage growth.

The pair rebounds despite expectations of BoJ’s intervention near the psychological resistance of 150.00. Japanese Finance Minister Shunichi Suzuki reiterated on Thursday, he won’t rule out any steps to respond if there’s any excessive FX volatility. He further added the authority is closely watching FX’s moves with a sense of urgency.

S&P500 futures added significant gains in the London session, portraying an improvement in the appeal for risk-sensitive assets. The US Dollar Index (DXY) extends its correction to near 105.70 as the risk appetite of the market participants improves.

Going forward, investors will focus on the United States core Personal Consumption Expenditure (PCE) inflation data for August, which will shape November’s monetary policy. As per estimates, the monthly core Personal Consumption Expenditure (PCE) price index is expected to maintain a steady pace of 0.2%. The annualized data is foreseen decelerating to 3.9% vs. July’s reading of 4.2%.

Technical Levels: Supports and Resistances

USDJPY currently trading at 149.06 at the time of writing. Pair opened at 149.31 and is trading with a change of -0.17 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 147.82, 50 SMA 145.52, 100 SMA @ 143.02 and 200 SMA @ 137.95.

The previous day high was 149.64 while the previous day low was 149.15. The daily 38.2% Fib levels comes at 149.33, expected to provide resistance. Similarly, the daily 61.8% fib level is at 149.45, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 149.09, 148.87, 148.59
• Pivot resistance is noted at 149.59, 149.86, 150.08

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