USD/JPY ascends mildly,lack of clarity on BoJ’s pivot weighs on the Yen


  • The USD/JPY is hovering around the 143.80 level with marginal gains recorded.
  • The dovish stance from Bank of Japan and it lack of guidance weakens JPY in markets.
  • PCE data on Friday from the US will likely set the pace for the upcoming sessions

The USD/JPY pair edged higher in Wednesday's session, trading around the 143.80 level, as the markets remained directionless due to the absence of Bank of Japan's pivot clues. To the downside, the Federal Reserve's dovish clarity may fuel some downside in case the Personal Consumption Expenditures (PCE) November figures come lower than expected on Friday.

In addition, Japan's weaker economy, which mirrors continual JGB yield declines, signaling that the Bank of Japan's rate hike is still on hold, makes the JPY lose interest among investors. On the US side, its economy is holding strong, while the Fed hinted at more rate cuts than expected for 2024, which leaves the US Dollar in a challenging situation. However, as long as inflation continues to edge downwards and give markets the chance to bet on earlier rate cuts, it could pave the way for additional downside.

Presently, US bond yields are in decline. The 2-year rate declined to 4.40%, while the 5-year and 10-year yields are lower at 3.89% each. This current trend could weigh on the USD as yields and currency tend to have an inverse relationship.

For Friday, investors will eye November's PCE figures from the US, with the headline and core figures expected to have decelerated to 2.8% YoY and 3.3% YoY.

USD/JPY levels to watch

Reflecting largely on the daily chart, the immediate short-term bias seems skewed to the upside. Specifically, the Relative Strength Index (RSI) slope is positively inclined and in the positive territory, suggesting that buying pressure has been gradually increasing, further supported by the Moving Average Convergence Divergence (MACD), which lays out decreasing red bars. However, it is crucial to understand that the current bullish momentum has not yet become sufficiently convincing.

The pair's interaction with Simple Moving Averages (SMAs) brings in a different perspective. With the pair trading below the 20 and 100-day SMAs, bearish influences hold sway over the shorter time frames. However, the tug-of-war between bulls and bears is not entirely skewed. This is evinced by the pair being above the 200-day SMA, suggesting that the bulls aren't out of the game on the broader scale.


Support Levels: 143.50, 143.00, 142.00.
Resistance Levels: 145.00, 145.80 (20-day SMA), 147.00.


USD/JPY daily chart

 

USD/JPY

Overview
Today last price 143.9
Today Daily Change 0.01
Today Daily Change % 0.01
Today daily open 143.89
 
Trends
Daily SMA20 146.16
Daily SMA50 148.54
Daily SMA100 147.65
Daily SMA200 142.62
 
Levels
Previous Daily High 144.96
Previous Daily Low 142.25
Previous Weekly High 146.59
Previous Weekly Low 140.94
Previous Monthly High 151.91
Previous Monthly Low 146.67
Daily Fibonacci 38.2% 143.92
Daily Fibonacci 61.8% 143.28
Daily Pivot Point S1 142.44
Daily Pivot Point S2 140.99
Daily Pivot Point S3 139.73
Daily Pivot Point R1 145.15
Daily Pivot Point R2 146.4
Daily Pivot Point R3 147.85

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD climbs back above 1.0750 ahead of ADP, Fed Minutes

EUR/USD climbs back above 1.0750 ahead of ADP, Fed Minutes

EUR/USD has regained lost ground above 1.0750 in the European session on Wednesday. The pair draws support from the renewed US Dollar weakness, in the aftermath of the dovish Fed Chair Powell's comments. Eyes turn to US ADP data, Fed Minutes. 

EUR/USD News

GBP/USD retakes 1.2700, looks to US data/Fed minutes

GBP/USD retakes 1.2700, looks to US data/Fed minutes

GBP/USD is battling 1.2700 in European trading on Wednesday, attempting a modest bounce. Traders appear reluctant and prefer to wait on the sidelines ahead of the FOMC minutes while the UK elections on Thursday also keep them on the edge. US ADP data eyed as well. 

GBP/USD News

Gold jumps toward $2,350, with eyes on key US events

Gold jumps toward $2,350, with eyes on key US events

Gold price is closing in on $2,350 in the European trading hours on Wednesday, staging a rebound amid a fresh leg down in the US Dollar. Gold price capitalizes on dovish Fed Chair Powell's remarks on Tuesday, which added to the September rate cut expectations. US ADP data and Fed Minutes on tap. 

Gold News

Bitcoin struggles around $64,000 level

Bitcoin struggles around $64,000 level

Bitcoin faces resistance near the $64,000 daily level, leading to a 1.05% decline in trading on Wednesday. Ethereum and Ripple similarly encounter resistance, resulting in 1% and 0.5% declines, respectively.

Read more

ADP Employment Change Preview: US private sector expected to add 160K new jobs in June

ADP Employment Change Preview: US private sector expected to add 160K new jobs in June

The United States ADP Research Institute will release its monthly report on private sector job creation for June. The announcement is expected to show that the country’s private sector added 160K new positions in June after adding 152K in May.

Read more

Forex MAJORS

Cryptocurrencies

Signatures