USD/JPY falls sharply from 151.00 as US Dollar retraces

USD/JPY slumps from 151.00 amid correction in the US Dollar.
Easing Japan’s inflation would dwindle BoJ’s plans of quitting the dovish policy stance.
Fed Waller prefers to delay rate cuts.

Sagar Dua FXStreet

The USD/JPY faces an intense sell-off from 150.80 in Friday’s early New York session. The asset has come under pressure as the US Dollar retraces vertically, even though Federal Reserve (Fed) policymakers argue in favor of keeping interest rates at their current level.

Considering positive overnight futures, the S&P500 is expected to open on a bullish note amid improved market sentiment. The US Dollar Index (DXY) corrects to 103.80 as the appeal for safe-haven assets wanes. 10-year US Treasury yields have dropped to 4.30%.

Fed policymakers are not interested in unwinding their restrictive interest rates stance as they are less convinced that inflation will sustainably return to the 2% target.

On Thursday, Fed Governor Christopher Waller added he wants to see inflation data for at least a couple of months to judge whether stubborn figures in January were mere short-term fluctuations or progress in inflation easing towards 2% has stalled. Waller added that risks associated with delaying rate cuts are lower than acting on them too quicky.

On the Japanese Yen front, investors await the National Consumer Price Index (CPI) data for January, which will be published on Tuesday. The annual CPI excluding fresh food is expected to come out below 2.0% at 1.8% against the former reading of 2.3%. This would dampen the Bank of Japan’s (BoJ) plans to exit the decade-long expansionary policy stance.

USD/JPY

Overview
Today last price	150.45
Today Daily Change	-0.05
Today Daily Change %	-0.03
Today daily open	150.5

Trends
Daily SMA20	149
Daily SMA50	146.32
Daily SMA100	147.61
Daily SMA200	145.62

Levels
Previous Daily High	150.69
Previous Daily Low	150.02
Previous Weekly High	150.89
Previous Weekly Low	148.93
Previous Monthly High	148.81
Previous Monthly Low	140.81
Daily Fibonacci 38.2%	150.43
Daily Fibonacci 61.8%	150.28
Daily Pivot Point S1	150.12
Daily Pivot Point S2	149.73
Daily Pivot Point S3	149.45
Daily Pivot Point R1	150.79
Daily Pivot Point R2	151.08
Daily Pivot Point R3	151.46

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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