TRENDING:

GBP/USD

XAU/USD

USD/JPY hesitates just shy of 143.75

USD/JPY took a step back from Wednesday’s grind higher after failing to claim 143.75.
Yen selling pressure eased off after Fed’s latest meeting minutes poised to disappoint markets.
China Services PMI to drive market sentiment in early Thursday market session.

Joshua Gibson FXStreet

The USD/JPY drove higher on Wednesday as the US Dollar (USD), the day’s single best-performing currency clambered over the Yen (JPY), the day’s biggest loser. The USD/JPY climbed one and a third percent bottom-to-top for the midweek market session, slipping back from just below 143.75 to wrap up Wednesday’s trading just above the 143.00 handle.

FOMC Minutes: Interest rates seem to be at or near peaks

The Federal Reserve’s (Fed) meeting minutes from the US central bank’s December discussion revealed that Fed policymakers may not be as far along the path towards rate cuts as market have been hoping for. Fed officials noted that, while rates appear to be “at or near” the peak, the main policy rate could hold higher for longer than market participants are currently expecting. The meeting minutes stand in stark contrast to the market’s broad risk-on reaction following Fed Chairman Jerome Powell’s surprise pivot in December which sent market expectations of rate cuts through 2024 skyrocketing.

The upcoming Thursday Asia market session is set for the second half of Purchasing Managers’ Index (PMI) figures from China with the China Caixin Services PMI slated to drop early at 01:45 GMT, and markets are expecting a slight uptick from November’s 51.5 to 51.6 in December.

China’s Caixin Manufacturing PMI on Tuesday came in above expectations, surprising to the upside and ticking higher from 50.7 to 50.8 in December, easily clearing the median market forecast of 50.4. A matching beat for Thursday’s Services PMI will help bolster risk appetite as markets kick off the back half of the first trading week of 2024.

High-impact data will wrap up the trading week with Friday’s US Nonfarm Payrolls, expected to slip back slightly from 199K to 168K in December.

USD/JPY Technical Outlook

The USD/JPY’s rally on Wednesday took the pair cleanly through the 200-hour Simple Moving Average (SMA) just above 142.00, sending the pair just shy of 143.75 before settling back towards the 143.00 handle.

Daily candlesticks have the pair running directly into technical resistance from the 200-day SMA just above 143.00, and the pair’s 7.5% peak-to-trough decline from November’s peak of 151.91 remains intact.

USD/JPY Hourly Chart

USD/JPY Daily Chart

USD/JPY Technical Levels

USD/JPY

Overview
Today last price	143.24
Today Daily Change	1.27
Today Daily Change %	0.89
Today daily open	141.97

Trends
Daily SMA20	143.1
Daily SMA50	147.01
Daily SMA100	147.47
Daily SMA200	143.13

Levels
Previous Daily High	142.22
Previous Daily Low	140.81
Previous Weekly High	142.85
Previous Weekly Low	140.25
Previous Monthly High	148.35
Previous Monthly Low	140.25
Daily Fibonacci 38.2%	141.68
Daily Fibonacci 61.8%	141.35
Daily Pivot Point S1	141.12
Daily Pivot Point S2	140.26
Daily Pivot Point S3	139.71
Daily Pivot Point R1	142.52
Daily Pivot Point R2	143.07
Daily Pivot Point R3	143.92

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD trims losses and returns to the 1.1750 area

The US Dollar resumed its decline in the American afternoon, helping EUR/USD trim early losses. The pair trades around 1.1750 as market participants gear up for the European Central Bank monetary policy decision and the United States Consumer Price Index.

GBP/USD consolidates above mid-1.3300s as traders await BoE and US CPI report

The GBP/USD pair struggles to capitalize on the overnight bounce from the 1.3310 area, or a one-week low, and oscillates in a narrow band during the Asian session on Thursday. Spot prices currently trade around the 1.3370 region, down less than 0.10% for the day, as traders opt to wait on the sidelines ahead of the key central bank event risk and US consumer inflation data.

Gold declines on profit-taking, USD strength ahead of US CPI release

Gold price edges lower below $4,350 during the Asian trading hours on Thursday. The precious metal retreats from seven-week highs amid some profit-taking and a rebound in the US Dollar (USD). The potential downside for the yellow metal might be limited after the recent US jobs data reinforce market expectations of further interest rate cuts by the US Federal Reserve and drag the USD lower.

Top Crypto Losers: Pump.fun, SPX6900, Bittensor slide further with double-digit losses

Pump.fun, SPX6900, and Bittensor are leading the losses in the cryptocurrency market over the last 24 hours amid total liquidations of over $500 million. The retail segment alleges institutional manipulation amid an early-morning Bitcoin sell-off routine in the US market.

Monetary policy: Three central banks, three decisions, the same caution

While the Fed eased its monetary policy on 10 December for the third consecutive FOMC meeting, without making any guarantees about future action, the BoE, the ECB and the BoJ are holding their respective meetings this week.

Crypto Today: Bitcoin, Ethereum, XRP slide further as risk-off sentiment deepens

Bitcoin faces extended pressure as institutional investors reduce their risk exposure. Ethereum’s upside capped at $3,000, weighed down by ETF outflows and bearish signals. XRP slides toward November’s support at $1.82 despite mild ETF inflows.