USD/JPY advances towards 132.00 amid dismal market mood, BoJ Kuroda favors policy easing


  • USD/JPY is marching towards 132.00 amid a risk-off mood propelled ahead of US inflation data.
  • The US inflation could display an upside surprise as the jobless rate is at a multi-decade low.
  • Japan’s government might reveal the new BoJ governor nominee and two deputy governor nominees on Feb. 14.

The USD/JPY pair is marching towards the critical resistance of 132.00 in the Tokyo session. The asset is witnessing significant strength amid the risk-aversion theme and favor for expansionary monetary policy by Bank of Japan (BoJ) Governor Haruhiko Kuroda.

The US Dollar Index (DXY) is aiming to shift its business above the 103.00 resistance amid an improvement in the appeal for safe-haven assets. Risk-perceived assets like S&P500 futures are witnessing selling interest despite a two-day sell-off spell. The United States Consumer Price Index (CPI) data that will release on Tuesday has hogged the limelight.

The consensus is calling for further softening of the headline inflation to 5.8% on an annual basis vs. the prior release of 6.5%. And, the core inflation that strips the impact of oil and food prices is seen lower at 5.3% against the former release of 5.8%. However, commentary from Richmond Fed President Thomas Barkin and the lowest Unemployment Rate recorded in January could surprise investors.

Fed Barkin argued that it would make sense for the Fed to steer "more deliberately" from here due to lagged effects of policy, as reported by Reuters. He further added that "While average inflation has peaked, the decline has been distorted by a few goods, the median has stayed high."

On the Japanese Yen front, BoJ Governor Haruhiko Kuroda said on Friday, “The benefits of easing outweigh the costs of side effects.” He further added that policy easing was appropriate and it gave its utmost efforts."

Meanwhile, Reuters has come up with an update for the release of the nominees for BOJ Kuroda’s successor. The agency reported Japan’s government is planning to present the new Bank of Japan governor nominee and two deputy governor nominees to parliament on Feb. 14.

USD/JPY

Overview
Today last price 131.71
Today Daily Change 0.09
Today Daily Change % 0.07
Today daily open 131.62
 
Trends
Daily SMA20 129.91
Daily SMA50 132.33
Daily SMA100 138.32
Daily SMA200 136.82
 
Levels
Previous Daily High 131.83
Previous Daily Low 130.34
Previous Weekly High 131.2
Previous Weekly Low 128.08
Previous Monthly High 134.78
Previous Monthly Low 127.22
Daily Fibonacci 38.2% 131.26
Daily Fibonacci 61.8% 130.91
Daily Pivot Point S1 130.7
Daily Pivot Point S2 129.78
Daily Pivot Point S3 129.21
Daily Pivot Point R1 132.18
Daily Pivot Point R2 132.75
Daily Pivot Point R3 133.67

 

 

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