USD/JPY hovers around 136.00 as investors eye Fed Powell’s testimony and BoJ policy


  • USD/JPY is oscillating around 136.00, downside looks favored amid the risk-on mood.
  • An upbeat market mood has pushed the 10-year US Treasury yields below 3.96%.
  • The BoJ is expected to remain dovish as current inflationary pressures in Japan are the outcome of international forces.

The USD/JPY pair is displaying a back-and-firth action around 136.00 in the early European session. The asset has turned sideways as investors are awaiting fresh triggers for further guidance. Right from Federal Reserve (Fed) chair Jerome Powell’s testimony to the interest rate decision by the Bank of Japan (BoJ) and the United States Employment report, plenty of events will be held this week.

Meanwhile, S&P500 futures have picked some bids after a choppy Monday, portraying a cheerful market mood. The US Dollar Index (DXY) is demonstrating signs of recovery after printing a day low at 104.16. The USD Index bulls could retreat amid the risk appetite theme, underpinned by the market participants. An upbeat market mood has also improved demand for US government bonds and has pushed the 10-year US Treasury yields below 3.96%.

Two-day Fed Powell’s testimony before Congress will provide meaningful cues. The street is having mixed responses toward commentary as one school of thought expects a hawkish commentary amid higher inflationary pressures while the other school of thought sees a neutral stance as many things bank upon February’s data.

Going ahead, if United States inflation continues to persist, the Unemployment Rate remains at lower levels, and consumer spending remains resilient, Fed Powell would have no other option than to push rates higher.

On the Tokyo front, the interest rate decision by the BoJ will remain in action. The BoJ is expected to remain dovish as current inflationary pressures in Japan are the outcome of international forces as the economy is struggling to accelerate wages and domestic growth.

USD/JPY

Overview
Today last price 135.99
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 135.99
 
Trends
Daily SMA20 134.27
Daily SMA50 132.15
Daily SMA100 136.5
Daily SMA200 137.35
 
Levels
Previous Daily High 136.19
Previous Daily Low 135.37
Previous Weekly High 137.1
Previous Weekly Low 135.26
Previous Monthly High 136.92
Previous Monthly Low 128.08
Daily Fibonacci 38.2% 135.88
Daily Fibonacci 61.8% 135.68
Daily Pivot Point S1 135.51
Daily Pivot Point S2 135.03
Daily Pivot Point S3 134.69
Daily Pivot Point R1 136.33
Daily Pivot Point R2 136.67
Daily Pivot Point R3 137.15

 

 

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