- USD/JPY is gearing up for a fresh bullish impulsive wave despite lower consensus for US CPI.
- The outstanding US NFP has infused fresh blood in Fed policymakers’ confidence.
- BOJ’s ultra-loose monetary policy will keep the yen bulls on a bumpy ride.
The USD/JPY pair has turned sideways in the Asian session following the footprints of the US dollar index (DXY). On a broader note, the asset is displaying back and forth moves after a juggernaut rebound from 133.00 on Friday.
The greenback bulls were driving the asset higher like there is no tomorrow after the release of the bumper US employment data. The US Nonfarm Payrolls (NFP) landed at 528k, significantly higher than the expectations of 250k and the prior release of 372k. Despite the headwinds of a halt in the recruitment process by US corporate and lower investments due to rising interest rates by the Federal Reserve (Fed), the employment data has remained upbeat and may support the Fed.
Now, the entire focus is shifting toward the US Consumer Price Index (CPI) data, which will release on Friday. A downside print is expected to be 8.7% from the former release of 9.1% on an annual basis. The US households were facing severe pressure from the higher price rise index. Thanks to the weaker oil prices in July, which is resulting in a steep fall in the US inflation data. However, this may not trim the extent of policy tightening measures by the Fed in September.
On the Tokyo front, the continuation of an ultra-loose monetary policy by the Bank of Japan (BOJ) will keep haunting the yen bulls. The BOJ is committed to spurting the growth rate and lifting that to the pre-pandemic levels as early as possible. Therefore, it is critical to pump much liquidity into the economy so that the investments could ramp up the wage price index and the inflation will remain above 2%.
|Today last price||135.31|
|Today Daily Change||0.00|
|Today Daily Change %||0.00|
|Today daily open||135.31|
|Previous Daily High||135.5|
|Previous Daily Low||132.52|
|Previous Weekly High||135.5|
|Previous Weekly Low||130.4|
|Previous Monthly High||139.39|
|Previous Monthly Low||132.5|
|Daily Fibonacci 38.2%||134.36|
|Daily Fibonacci 61.8%||133.66|
|Daily Pivot Point S1||133.38|
|Daily Pivot Point S2||131.46|
|Daily Pivot Point S3||130.4|
|Daily Pivot Point R1||136.37|
|Daily Pivot Point R2||137.43|
|Daily Pivot Point R3||139.35|
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.