The pair stands rose nearly to 150.00 after four consecutive days of losses.
USD/JPY surrendered earlier gains after the BOJ’s Monetary Policy Statement reaffirmed its ultra-loose policy.
Core PCE from the US retreated to 4.1% YoY in June, fueling a decrease in US yields.
At the time of writing, the USD/JPY pair is trading near the 150.00 area, 1% above its opening price, after reaching a daily low of 138.05. The U.S. dollar, measured by the DXY index, trades relatively flat at the end of the week following pressured down by soft Core Personal Consumption Expenditures (PCE) figures from June.
In that sense, US Treasury yields are decreasing to Core PCE, retreating to 4.1% below the expectations as Fed Chair Jerome Powell clearly stated that ongoing decisions will depend on incoming data. However, the Federal Reserve (Fed), until the next September meeting, will get two additional sets of inflation and job report figures which will be the ones which model the tightening expectations.
However, the pair’s upwards trajectory is explained by markets considering dovish the Bank of Japan (BoJ) monetary policy decision. No hikes were announced or hinted but concluded with an unexpected Yield Curve Control (YCC) adjustment. Regarding Governor Ueda’s comments, he stated that the decision was not a step toward normalisation as the bank is still far from where it can raise short-term rates, and its dovish tone seems to be weakening the Yen.
USD/JPY Levels to watch
The technical outlook for the USD/JPY is neutral to bullish for the short term. Indicators have gained some strength but remain in negative territory while the pair is capped by the 20-day Simple Moving Average (SMA) at 140.93.
Resistance Levels: 140.93 (20-day SMA), 141.50, 142.00.
Support levels: 138.70, 138.00, 137.40 (100-day SMA).
USD/JPY Daily chart
-638261652941187296.png)
USD/JPY
Overview
Today last price140.97
Today Daily Change1.50
Today Daily Change %1.08
Today daily open139.47
Trends
Daily SMA20141.13
Daily SMA50140.9
Daily SMA100137.35
Daily SMA200136.73
Levels
Previous Daily High141.32
Previous Daily Low138.76
Previous Weekly High141.96
Previous Weekly Low137.68
Previous Monthly High145.07
Previous Monthly Low138.43
Daily Fibonacci 38.2%139.74
Daily Fibonacci 61.8%140.35
Daily Pivot Point S1138.38
Daily Pivot Point S2137.29
Daily Pivot Point S3135.82
Daily Pivot Point R1140.94
Daily Pivot Point R2142.41
Daily Pivot Point R3143.5
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.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/usd-jpy-sees-volatility-as-markets-asses-us-core-pce-and-bojs-decision-202307281823
