USD/JPY approaching 150.00 with BoJ intervention eyed

The dollar continues marching higher and reaches the 149.70 area.
Investors hold their breath for a potential BoJ intervention at 150.00
USD/JPY's rally could reach 160.00 – Nordea.

Guillermo Alcala FXStreet

The greenback resumed the upside on Wednesday and appreciates for the 11^th consecutive day, with the pair reaching session highs at 149.70 so far, approaching the psychological 150.00 level, which according to some market sources, might trigger an intervention by the Bank of Japan.

All eyes are on a potential BoJ intervention

With the Japanese yen declining across the board, the USD/JPY has surged about 30% since march, to reach 32-year highs. The US dollar is now moving well above the 145.00 level, which triggered the first BoJ intervention since 1998 in September.

US Treasury yields picked up on Wednesday, with the market shifting its focus towards the Federal Reserve’s monetary policy meeting, due on November 1 and 2. The bank is widely expected to increase the Federal Funds Rate by 75 basis points for the fourth consecutive time, which has provided a fresh boost to the USD after having traded without clear direction over the last two days.

Monetary policy divergence is the main reason behind yen's weakness. The Bank of Japan is lagging behind all the major central banks, already in a monetary tightening cycle, which is crushing demand on the yen.

USD/JPY could reach 160.00 – Nordea

FX analysts at Nordea Bank observe more upside potential on the pair and point out a potential 160.00 target: “With a continued worsening of rate differentials, we see USD/JPY trading as high as 160 at times, even with the intervention from the Japanese government (…) What will stop the weakening of the JPY is a shift in monetary policy from the Bank of Japan or a 180-degree shift from all other G10 central banks.

Technical levels to watch

USD/JPY

Overview
Today last price	149.76
Today Daily Change	0.48
Today Daily Change %	0.32
Today daily open	149.28

Trends
Daily SMA20	145.44
Daily SMA50	141.67
Daily SMA100	138.41
Daily SMA200	129.83

Levels
Previous Daily High	149.39
Previous Daily Low	148.16
Previous Weekly High	148.86
Previous Weekly Low	145.24
Previous Monthly High	145.9
Previous Monthly Low	138.78
Daily Fibonacci 38.2%	148.92
Daily Fibonacci 61.8%	148.63
Daily Pivot Point S1	148.5
Daily Pivot Point S2	147.71
Daily Pivot Point S3	147.27
Daily Pivot Point R1	149.73
Daily Pivot Point R2	150.18
Daily Pivot Point R3	150.96

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

GBP/USD weakens below 1.3450 as US-Iran uncertainty boosts safe-haven US Dollar

The GBP/USD pair loses ground to near 1.3425 during the early Asian session on Tuesday. Uncertainty surrounding US-Iran talks drives traders toward a safe-haven currency such as the US Dollar against the British Pound. All eyes will be on the US July jobs data, which is due later on Friday.

EUR/USD flatlines above 1.1500 as traders turn cautious ahead of US NFP data

The EUR/USD pair holds steady around 1.1505 during the early European trading hours. Markets remain cautious ahead of the crucial US July jobs report, which is due later this week. Eurozone inflation ticked up in July, bolstering the case for a rate hike from the European Central Bank. The headline Eurozone inflation rose to 2.9% YoY in July from 2.8% in June, in line with expectations.

Gold consolidates above $4,050 amid Fed hike bets and Iran uncertainty

Gold seesaws between tepid gains and minor losses during the Asian session as traders seem hesitant and opt to wait for further developments surrounding the Middle East crisis. The US Dollar struggles to build on the previous day's solid bounce from the lowest level since Mid-June and acts as a tailwind for the bullion. However, the uncertainty over US-Iran peace talks helps limit the downside for the buck.

Ripple and Stellar steady as derivatives data points to easing downside pressure

Ripple and Stellar show mixed price action, with XRP holding above the key $1 support zone while XLM faces rejection at $0.173. Meanwhile, improving derivatives metrics alongside fading bearish momentum suggest that the downside pressure may be easing for both altcoins. Derivatives data shows mild bullish sentiment among traders.

NFP week: What awaits Bitcoin and Gold

This is an NFP week as markets brace for the release of a large influx of job market statistics. The data rollout begins with the JOLTS Job Openings report on Tuesday, continues with the ADP Employment report on Wednesday and Jobless claims on Thursday, and finishes with the Nonfarm Payrolls report on Friday.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.