- The USD/JPY increased above 146.00, showing more than 0.60% of daily gains.
- The Yen is losing traction following the PBoC rate cut.
- Investors await the annual Jackson Hole Symposium on Thursday´s session.
At the start of the week, the USD/JPY sees green around 146.20, showing more than 0.60% gains on the day. In that sense, the People’s Bank of China's (PBoC) unexpected decision to cut the one-year Loan Prime Rate (LPR) is causing the Yen to lose ground, as well as the dovish stance of the Bank of Japan (BoJ). On the US side, investors remain on the sidelines awaiting S&P PMI and Thursday’s Jackson Hole Symposium.
Investors await forward guidance from Jerome Powell at Jackson Hole Symposium
On Thursday, Jerome Powell will deliver a speech at the 2023 Jackson Hole Symposium, where investors will look for clues regarding the Federal Reserve's (Fed) upcoming decision. As for now, inflation in the US is seeing a mixed picture, with the Consumer Price Index (CPI) having decelerated in July, but the Producer Price Index (PPI) slightly accelerating in the same month while economic activity remains strong. That said, Chair Powell’s outlook will help investors model their expectations and will likely set the pace of the USD price dynamics.
On the Japanese side, it was reported that the Bank of Japan (BoJ) would consider tightening when local wages increase and its dovish stance is applying pressure on the JPY. In addition, the PBoC delivered an unexpected rate that reminded investors about China’s gloomy outlook, also contributing to Yen’s downside.
USD/JPY Levels to watch
Observing the daily chart, USD/JPY suggests a bullish sentiment for the near future. The Relative Strength Index (RSI) remains in the positive zone above its midline, showing an upward slope near overbought territory. Concurrently, the Moving Average Convergence Divergence (MACD) prints green bars, reinforcing the bullish momentum. Additionally, the pair is above the 20,100,200-day Simple Moving Averages (SMAs), indicating that the bulls are in command of the broader picture.
Support levels: 146.00, 145.50, 145.00.
Resistance levels: 146.55, 147.00, 147.50.
USD/JPY Daily chart
-638282312082741640.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 stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
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.