• USD/JPY picks up bids to reverse early Asian session losses.
  • Covid updates from China recently favored market sentiment, Japan’s Suzuki pushes for budget surplus.
  • Softer US data, Fedspeak challenge buyers amid indecisive markets.
  • US Retail Sales, Fed Chair Powell’s speech to determine near-term moves, risk catalysts are important too.

USD/JPY refreshes intraday high to 129.25 as upbeat sentiment joins firmer Treasury yields to please buyers after a lackluster start to the week.

That said, the quote’s latest run-up could be linked to the positive headlines from China, as well as in anticipation of US Retail Sales for April and a speech from the Fed Chairman Jerome Powell. Furthermore, comments from Japan’s Finance Minister Shunichi Suzuki.

The Japanese policymaker recently said, “In FY 2025/26, the primary budget surplus aim must be met.”

Elsewhere, Shanghai conveyed plans to end the covid-linked lockdown after the third consecutive day of zero coronavirus cases outside the quarantine area, which in turn favors the market sentiment and propels the USD/JPY prices.

It should be noted that the US Treasury yields dropped the previous day, with the US Dollar Index (DXY), as a fall in the NY Empire State Manufacturing Index for May, expected +15.5 versus -11.6 actual, as well as comments from New York Fed President John Williams. Fed’s Williams backed Chairman Jerome Powell’s 50 basis points (bps) rate hike idea by highlighting inflation as the main issue. It should be noted that the news suggesting the US extend covid public health emergency beyond July also allowed the US dollar to pare some gains. That said, the US Dollar Index (DXY) eased further from its 20-year top, printed a two-day downtrend as sellers approach 104.00 by the end of Monday’s North American session. The softer yields and hopes of not-so-heavy rate hikes helped the Wall Street benchmarks, even as US equities printed mixed closing on Monday.

Amid these plays, the US 10-year Treasury yields added 1.8 basis points (bps) to 2.897% by the press time whereas the S&P 500 Futures rose 0.20% at the latest.

Moving on, the US Retail Sales for April, expected at 0.7% versus 0.5% prior, will offer initial directions to the USD/JPY prices ahead of Fed Chair Powell’s speech at the Wall Street Journal’s (WSJ) event. Traders will be more interested in hearing how Fed’s Powell defends his 50-bps rate hike bias amid surging inflation fears. Should Powell manages to do that, the USD/JPY may witness fresh downside pressure.

Technical analysis

A convergence of the 10-DMA and weekly resistance line, around 129.65-70, appears a tough nut to crack for short-term USD/JPY buyers. However, fresh selling is likely to wait unless witnessing a clear break below the three-week-old support line, near 128.50 by the press time.

Additional important levels

Today last price 129.21
Today Daily Change 0.00
Today Daily Change % 0.00%
Today daily open 129.21
Daily SMA20 129.28
Daily SMA50 124.72
Daily SMA100 119.88
Daily SMA200 116.08
Previous Daily High 129.64
Previous Daily Low 128.7
Previous Weekly High 131.35
Previous Weekly Low 127.52
Previous Monthly High 131.26
Previous Monthly Low 121.67
Daily Fibonacci 38.2% 129.28
Daily Fibonacci 61.8% 129.06
Daily Pivot Point S1 128.72
Daily Pivot Point S2 128.24
Daily Pivot Point S3 127.78
Daily Pivot Point R1 129.67
Daily Pivot Point R2 130.13
Daily Pivot Point R3 130.61



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

EUR/USD falls through 1.0100 amid renewed dollar strength

EUR/USD falls through 1.0100 amid renewed dollar strength

EUR/USD came under heavy bearish pressure, now trading below the 1.0100 level and at its lowest for this month. Although the data from the US showed that Existing Home Sales fell sharply in July, the economy seems resilient to global woes.


GBP/USD slumps to multi-week lows and nears 1.1900

GBP/USD slumps to multi-week lows and nears 1.1900

GBP/USD extended its daily slide and touched its weakest level since mid-July in the 1.1920 price zone. The broad-based dollar strength, as reflected by a more than 0.5% increase in the US Dollar Index, forces the pair to continue to stretch lower in the American session.


Gold bearish breakout underway

Gold bearish breakout underway

Gold is losing ground for a fourth consecutive day, trading at fresh weekly lows. The metal suffers from renewed dollar strength, as US data suggest the economy remains resilient to the latest global woes, leaving room for the Fed to maintain its aggressive stance.

Gold News

Why XTZ traders need to be glued to the screen for next 48 hours

Why XTZ traders need to be glued to the screen for next 48 hours

Tezos price will likely take a key turn lower today after the bullish print on Wednesday. XTZ price is at the mercy of global markets rolling over this morning. Either the technical support handles hold – or break under dollar pressure.

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!