• USD/JPY is attempting to balance above 135.00 as the DXY is holding itself above 105.00.
  • Fed’s policy tightening measures will cut the growth prospects and job additions.
  • BOJ’s ultra-loose monetary policy has weakened the yen bulls.

The USD/JPY pair has remained subdued in the Asian session, following the footprints of the US dollar index (DXY). The major slipped lower at the open to the crucial support of 134.78, however, the asset rebounded firmly and is now attempting to sustain above the round-level support of 134.78.

The DXY has turned sideways after sensing bids below the psychological support of 105.00. Also, the market participants are awaiting the release of the Federal Open Market Committee (FOMC) minutes. A modest rebound after a sheer downside move doesn’t resemble a bullish reversal. For the same, the asset needs more meaningful filters. Friday’s sell-off in the DXY is backed by the vulnerable performance of the US Institute of Supply Management (ISM).

The US ISM Manufacturing PMI landed at 53, lower than the expectations and the prior print of 54.9 and 56.1 respectively. Apart from that, the Employment Index and New Orders Index displayed a vulnerable performance. The downbeat economic data trimmed the odds of a bumper rate hike announcement by the Federal Reserve (Fed).

Traders should be aware of the fact that the catalysts behind Fed’s confidence in announcing extreme policy tightening measures were strong growth prospects and a tight labor market. Now, the overall demand and employment numbers will be affected by the Fed’s tightening measures. For more clarity, the consensus for the US Nonfarm Payrolls (NFP) has cut significantly to 250k from the prior print of 390k.

On the Tokyo front, the continuation of an ultra-loose monetary policy will weigh pressure on the yen bulls as other nations are suiting up for more rate hike announcements this month. The economy is facing the headwinds of soaring oil and food prices, which have elevated their plain-vanilla inflation rate but not the core Consumer Price Index (CPI).

USD/JPY

Overview
Today last price 135.12
Today Daily Change -0.09
Today Daily Change % -0.07
Today daily open 135.21
 
Trends
Daily SMA20 134.79
Daily SMA50 131.29
Daily SMA100 125.72
Daily SMA200 119.86
 
Levels
Previous Daily High 135.99
Previous Daily Low 134.74
Previous Weekly High 137
Previous Weekly Low 134.52
Previous Monthly High 137
Previous Monthly Low 128.65
Daily Fibonacci 38.2% 135.22
Daily Fibonacci 61.8% 135.51
Daily Pivot Point S1 134.64
Daily Pivot Point S2 134.07
Daily Pivot Point S3 133.39
Daily Pivot Point R1 135.88
Daily Pivot Point R2 136.55
Daily Pivot Point R3 137.12

 

 

 

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD: China, Fedspeak probe bulls near 0.7100, Aussie inflation expectations eyed

AUD/USD: China, Fedspeak probe bulls near 0.7100, Aussie inflation expectations eyed

AUD/USD treads water around 0.7080, after rallying to the fresh two-month high, as the recent Fedspeak and headlines surrounding the China tariffs seemed to have poked the bulls. The Aussie pair traders remain cautious ahead of the monthly Consumer Inflation Expectations from Australia.

AUD/USD News

EUR/USD defends US inflation-inspired gains near 1.0300 at one-month high

EUR/USD defends US inflation-inspired gains near 1.0300 at one-month high

EUR/USD flirts with the 1.0300 threshold, after posting the biggest daily gains to refresh five-week high, as traders reassess the risk profile during early Thursday morning in Europe. The reduction in the US inflation numbers propelled hopes that Fed could ease on its rate hike trajectory.

EUR/USD News

Gold extends recovery towards $1,800 as hawkish Fed bets trim

Gold extends recovery towards $1,800 as hawkish Fed bets trim

Gold price has picked bids below $1,790.00 and is extending its recovery above the immediate hurdle of $1,792.00 amid a broader risk-on in the global market. The precious metal is expected to continue its upside run-up after a healthy correction to near $1,808.00.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: How to trap a hungry bear

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: How to trap a hungry bear

Crypto markets moves higher. Placing a countertrend short is still ill-advised. Higher targets remain possible for all assets. BTC tests the lower half of an ascending channel for the third time. ETH continues displaying bearish divergence but underline market strength remains. XRP in a make-or-break situation.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures