USD/JPY holds positive ground above 142.60 amidst the holiday season's thin trading


  • USD/JPY trades in positive territory near 142.60, adding 0.14% on the day.
  • The BoJ Summary of Opinions suggested that the central bank will consider a policy shift if the wage-price cycle intensifies.
  • The US Core Personal Consumption Expenditures Price Index (PCE) grew 3.2% YoY in November, below the market consensus of 3.3%.

The USD/JPY pair gains ground during the early Asian session on Wednesday. The pair has reached 142.84 following the release of the Bank of Japan's (BoJ) Summary of Opinions and currently trades around 142.60. The market is likely to be quiet amid the light trading volume in the last week of 2023.

Early Wednesday, the BoJ released the Summary of Opinions from the December Monetary Policy meeting. The remarks from the meeting were not surprised by the market, and the Japanese central bank is aware that conditions may emerge for withdrawing YCC and ultimately raising short-term interest rates out of negative territory. However, there’s no decision yet on the timing of the policy shift.

On Monday, BoJ Governor Kazuo Ueda said that the possibility of achieving the central bank's inflation target was gradually rising and that it would consider adjusting policy if prospects of sustainably achieving the 2% target increased sufficiently.

On the other hand, the cooling inflation figures last week fueled expectations that the Federal Reserve (Fed) may cut interest rates in the coming year. This, in turn, exerts some selling pressure on the US Dollar. The US Core Personal Consumption Expenditures Price Index (PCE), which excludes energy and food prices, rose 3.2% YoY in November, below the market consensus of 3.3%. The monthly Core PCE figures arrived at 0.1% in the same period, weaker than the expectation of 0.2%.

The risk sentiment and the ongoing adjustments in central bank policies are expected to continue influencing currency movements amid the holiday season's thin trading. Later this week, the US Richmond Fed Manufacturing Index for December and the Initial Jobless Claims will be released on Wednesday and Thursday, respectively. However, these figures might not have a significant impact on the market.

 

USD/JPY

Overview
Today last price 142.62
Today Daily Change 0.19
Today Daily Change % 0.13
Today daily open 142.43
 
Trends
Daily SMA20 144.59
Daily SMA50 147.85
Daily SMA100 147.65
Daily SMA200 142.88
 
Levels
Previous Daily High 142.64
Previous Daily Low 142.09
Previous Weekly High 144.96
Previous Weekly Low 141.86
Previous Monthly High 151.91
Previous Monthly Low 146.67
Daily Fibonacci 38.2% 142.43
Daily Fibonacci 61.8% 142.3
Daily Pivot Point S1 142.14
Daily Pivot Point S2 141.84
Daily Pivot Point S3 141.6
Daily Pivot Point R1 142.68
Daily Pivot Point R2 142.93
Daily Pivot Point R3 143.23

 

 

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 extends recovery beyond 1.0400 amid Wall Street's turnaround

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. 

 

EUR/USD News
GBP/USD nears 1.2600 on renewed USD weakness

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.

GBP/USD News
Gold rises above $2,620 as US yields edge lower

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.

Gold News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

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.

Read more
Bank of England stays on hold, but a dovish front is building

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.

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures