- The USD/JPY is exploring the downside on speculation the Fed is nearing an end of the tightening cycle.
- The pair is being guided lower, possibly by the 10-year treasury yield, which hit five-day lows soon before press time.
Powell's dovish speech continues to weigh over both the US Treasury yields and the greenback.
At press time, the 10-year treasury yield is trading at a five-day low of 3.03 percent, having shed four basis points yesterday. More importantly, the decline in the treasury yields is likely pushing the USD/JPY pair lower.
The currency pair dipped below the 100-hour moving average (HMA) of 113.41 a few minutes before press time and could slide further, as the double top breakdown seen in the 10-year treasury yield's daily chart is signaling the path of least resistance is to the downside.
Fed Chair Jerome Powell, at 17:00 GMT yesterday, said the interest rates are just below the range of neutral estimates, squashing bets of an extended tightening cycle. As a result, the dollar will likely remain on the defensive. The downside in the USD/JPY, however, could be limited as increased prospects of fewer Fed rate hikes could put a strong bid under the global equity markets.
USD/JPY Technical Levels
USD/JPY
Overview:
Today Last Price: 113.38
Today Daily change: -25 pips
Today Daily change %: -0.220%
Today Daily Open: 113.63
Trends:
Previous Daily SMA20: 113.33
Previous Daily SMA50: 113.03
Previous Daily SMA100: 112.21
Previous Daily SMA200: 110.37
Levels:
Previous Daily High: 114.04
Previous Daily Low: 113.44
Previous Weekly High: 113.24
Previous Weekly Low: 112.3
Previous Monthly High: 114.56
Previous Monthly Low: 111.38
Previous Daily Fibonacci 38.2%: 113.67
Previous Daily Fibonacci 61.8%: 113.81
Previous Daily Pivot Point S1: 113.37
Previous Daily Pivot Point S2: 113.1
Previous Daily Pivot Point S3: 112.77
Previous Daily Pivot Point R1: 113.97
Previous Daily Pivot Point R2: 114.3
Previous Daily Pivot Point R3: 114.57
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