- USD/JPY loses momentum around 145.90, stands above the key 100-hour EMA.
- The Relative Strength Index (RSI) stands in bearish territory below 50.
- The immediate resistance level appears at 146.30; the first support level is located at 145.70.
The USD/JPY pair attracts some sellers during the early European session on Thursday. The major currently trades around 145.90, losing 0.23% on the day. Markets turn cautious ahead of the release of the US Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve (Fed) preferred gauge of inflation.
Furthermore, Bank of Japan (BoJ) Board member Toyoaki Nakamura stated on Thursday that policymakers need more time to transition to monetary tightening. The remark renews hawkish concerns about BoJ and exerts pressure on the USD/JPY pair.
About the data, the Japanese Retail Sales rose by 6.8% YoY in July versus 5.6% prior, better than the expectation of 5.4%. Meanwhile, the nation’s Industrial Production dropped by 2.0% MoM in July from a rise of 2.4% in the previous month, compared to market consensus of a 1.4% drop.
According to the four-hour chart, the USD/JPY pair stands above the key 100-hour Exponential Moving Averages (EMAs) with an upward slope, which supports the buyers for the time being. However, the Relative Strength Index (RSI) stands in bearish territory below 50, indicating that the further downside cannot be ruled out.
The immediate resistance level for USD/JPY appears at 146.30 (the midline of the Bollinger Band). Any meaningful follow-through buying will see a rally to the boundary of the Bollinger Band and a psychological round mark at the 146.90-147.00 region. Further north, the next barrier to watch for USD/JPY is at a Year-To-Date (YTD) high of 147.37, followed by 147.55 (a high of November 2022) and 148.00 (a round figure).
On the flip side, the first support level is located near a lower limit of the Bollinger Band at 145.70. The next contention level is seen at 145.30 (100-hour EMA). Any intraday pullback below the latter would expose the next critical downside stop at 145.00 (a psychological round mark) and finally at 144.55 (a low of August 23).
USD/JPY four-hour chart
-638290580564446025.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
AUD/USD continues to recover despite an improved US Dollar
The Australian Dollar (AUD) extends its gains for a second consecutive session on Monday, supported by hawkish comments from Reserve Bank of Australia (RBA) Governor Michele Bullock last Thursday. Bullock emphasized that current interest rates are sufficiently restrictive and will remain unchanged until the central bank is confident about the inflation outlook.
USD/JPY regains 154.00 and beyond amid BoJ's Ueda-led volatility
USD/JPY has recaptured 154.00 in Asian trading on Monday after BoJ Governor Kazuo Ueda's comments injected volatility around the Japanese Yen. Ueda offered no clues on a likely December interest rate hike, weigihing heavily on the Yen while triggering a big USD/JPY jump.
Gold bounces off key support on renewed Russia-Ukraine geopolitical risks
Gold price (XAU/USD) extends its rebound to test $2,600 early Monday, snapping a six-day losing streak. The latest uptick in Gold price could be attributed to rsurfacing Russia-Ukraine geopolitical tensions after US authorizes Ukraine to use long-range US weapons to strike inside Russia.
Dollar rally 2024: Epic bull run or dangerous bubble?
Dear, The US dollar is surging—how high can it go? Is this unstoppable growth or a bubble about to burst? Discover the 5 key factors fueling this rally Watch, learn, and get ready for what’s next! .
Week ahead: Preliminary November PMIs to catch the market’s attention
With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.
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.