USD/JPY closes above 146.00, bulls prepare for another upwards leg


  • USD/JPY traded with mild losses in a narrow range on Monday and closed at 146.40.
  • The USD was one of the session's worst performers, with the JPY being the weakest.
  • Investors turned their focus to ISM Services PMI for fresh catalysts.

At the start of the week, the USD/JPY saw little movement, with both currencies trading weak against most of their rivals. The USD traded soft after last week's key events. Nonfarm Payrolls showed a mixed picture, while the ISM Manufacturing PMI rose higher than expected and the Core Personal Consumption Expenditures came in hot. Focus now shifts to Service sector PMI surveys from the ISM to be released on Wednesday, which will help investors to continue modelling their expectations regarding the next Federal Reserve (Fed) decisions.

The USD is trading soft on Monday after last week's key events. Nonfarm Payrolls showed a mixed picture, while the August ISM Manufacturing PMI rose higher than expected as well as the Core Personal Consumption Expenditures from July. Focus now shifts to Service sector PMI surveys from the ISM to be released on Wednesday, which will help investors to continue modelling their expectations regarding the next Federal Reserve (Fed) decisions.

According to the CME FedWatch tool, the odds of an extra 0.25% tightening throughout the period leading to the December meeting had somewhat eased, but investors are still placing some bets on it. If the Fed opts for another hike, it would lift rates to 5.75%.

 On the Yen’s side, local wage and inflation data will play a pivotal role in the Bank of Japan’s (BoJ) considerations for potential adjustments to monetary policy. In that sense, at the early Asian session on Thursday, Japan will report household spending and earnings figures from July, and their outcome will influence the expectations of the following BoJ decisions.

USD/JPY Levels to watch 

 Analysing the daily chart, the USD/JPY technical outlook is bullish in the short term. The Relative Strength Index (RSI) is positioned above its midline in positive territory. It has a northward slope, indicating a favourable buying momentum. It is further supported by the positive signal from the Moving Average Convergence Divergence (MACD), which displays green bars, underscoring the growing bullish momentum. Also, the pair is above the 20,100,200-day Simple Moving Average (SMA), indicating a favourable position for the bulls in the bigger picture.

 Support levels: 145.72 (20-day SMA), 145.00, 144.00.

 Resistance levels: 146.80, 147.00, 147.40.

USD/JPY Daily Chart

USD/JPY

Overview
Today last price 146.45
Today Daily Change 0.22
Today Daily Change % 0.15
Today daily open 146.23
 
Trends
Daily SMA20 145.38
Daily SMA50 143.23
Daily SMA100 140.52
Daily SMA200 136.83
 
Levels
Previous Daily High 146.29
Previous Daily Low 144.44
Previous Weekly High 147.38
Previous Weekly Low 144.44
Previous Monthly High 147.38
Previous Monthly Low 141.51
Daily Fibonacci 38.2% 145.59
Daily Fibonacci 61.8% 145.15
Daily Pivot Point S1 145.02
Daily Pivot Point S2 143.8
Daily Pivot Point S3 143.16
Daily Pivot Point R1 146.87
Daily Pivot Point R2 147.51
Daily Pivot Point R3 148.72

 

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

AUD/USD remains on the defensive below 0.6450, investors await Australian CPI data

AUD/USD remains on the defensive below 0.6450, investors await Australian CPI data

AUD/USD remains on the defensive near 0.6420 during the early Asian session on Monday. The Federal Reserve media blackout went into effect at midnight Friday. Nonetheless, the US central bank has delivered hawkish messages in recent weeks and markets expect the first cut in September. 

AUD/USD News

EUR/USD touches five-month low on growing expectations that ECB will ease before Fed

EUR/USD touches five-month low on growing expectations that ECB will ease before Fed

EUR/USD managed to counter a poor start of the week and reverse course despite the European currency slipping back to the 1.0600 key support against the US Dollar, or five-month lows.

EUR/USD News

Gold: Will geopolitics continue to drive XAU/USD?

Gold: Will geopolitics continue to drive XAU/USD?

Gold price fluctuated in a relatively narrow range this week following the record-setting rally. Investors will continue to pay close attention to headlines surrounding the Iran-Israel conflict and scrutinize key macroeconomic data releases from the US this week.

Gold News

A breakout or significant price movement may be imminent for Ripple’s token

A breakout or significant price movement may be imminent for Ripple’s token

Ripple has been range-bound for a while, with token holders patiently holding as the ecosystem contended against the US Securities and Exchange Commission. As per a recent report, the payments token’s price has been stuck below $0.50, failing to breach key resistance levels.

Read more

Week ahead: US GDP and BoJ decision on top of this week’s agenda

Week ahead: US GDP and BoJ decision on top of this week’s agenda

US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap. Earnings season heats up as tech giants report.

Read more

Forex MAJORS

Cryptocurrencies

Signatures