- The USD/JPY trades at 149.60 after reaching a daily low of 148.90 .
- Hawkish bets on BoJ is benefiting the JPY as investors anticipate a tighter monetary policy.
- US Traders will be on the sidelines celebrating Thanksgiving.
- Eyes on Japanese inflation data.
The USD/JPY, in Thursday's session, is experiencing mild losses at the 149.60 mark after reaching a low of around 148.90. What drove the pair downwards appears to be the hawkish bets on the Bank of Japan (BoJ). On Friday, Japan will report inflation figures from October.
As the primary catalyst for the JPY is speculations surrounding a shift in the Bank of Japan's policy stance, Japan's National Consumer Price Index (CPI) figures will be closely watched. The headline figure is expected to accelerate 3% YoY from the previous 2.8% YoY, while the Core figure is also forecasted to accelerate above the BoJ’s 2% target.
On the other hand, as the US traders celebrate Thanksgiving, no big moves are expected for the pair on Thursday. On Friday's session, the US will report November’s preliminary S&P PMIs, which will likely impact the USD as it will give a clearer outlook of the US economy. Investors should remember that the Federal Reserve (Fed) remains hawkish and doesn’t rule out further tightening in case data justifies it, so hot figures may strengthen the USD.
USD/JPY levels to watch
On the daily chart, the Relative Strength Index (RSI) is currently flat, residing in the negative territory, which suggests a struggle among the market participants and reflects potential selling momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) presenting flat red bars indicates waning buying momentum, a possible inclination towards a bearish market sentiment. In addition, the pair is trading below the 20-SMA (Simple Moving Averages), which supports this view.
That being said, the USD/JPY maintains a position above the critical 100 and 200-SMAs, hinting the broader trend still favours the bullish side. In short, despite the recently gained ground by the bears, the buying momentum appears dominant in the larger context.
Resistance Levels: 150.00, 105.20 (20-day SMA), 151.00.
Support Levels: 149.00, 148.00, 147.00.
USD/JPY daily chart
-638363540677269679.png)
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
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.