USD/JPY hovers around cycle high on low volume session


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  • USD/JPY trades stable in the 141.80 area after hitting its highest point since November 2022.
  • US Stock and bond markets are closed on Juneteenth celebrations.
  • Eyes on economic data from the US, Chair Powell's testimony on Wednesday. 

The USD/JPY slightly retreated on Monday to the 141.80 area after hitting a multi-month high on Friday. US traders are celebrating Juneteenth and markets are relatively quiet. Investors seem to be consolidating gains after the USD/JPY pair increased more than 100 pips on Friday. The week’s focus remains on economic data from the US, released throughout the next sessions, Chair Powell's testimony before the US Congress and the Bank of Japan (BoJ) minutes out on Tuesday.

Economic data to start shaping July’s Fed decision, eyes on BoJ minutes

Last Wednesday, Jerome Powell stated that the Federal Reserve (Fed) opted for a hike pause, and that officials needed additional information to assess its implications on monetary policy. In that sense, US Housing data to be released on Tuesday, followed by Jobless Claims and S&P PMIs on Thursday and Friday, respectively, may impact their expectations regarding the next July meeting. In addition, Chair Powell’s testimony before Congress on Wednesday may trigger some reaction in USD price dynamics.

As for now, according to the CME FedWatch tool, investors are betting on a 75% probability of the Fed hiking by 25 basis points (bps) to the 5.25%-5.50% range on July 26.

On the other hand, the BoJ will release the minutes of its Friday meeting on Tuesday, where investors will get a better outlook of the bank's stance regarding monetary policy that could potentially impact the Yen.

USD/JPY Levels to watch

The USD/JPY has a bullish outlook in the short term, as per the daily chart. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both in positive territory, and the pair trades above its main moving averages, indicating that the buyers are in charge.

If USD/JPY manages to move higher, the next resistances to watch are at the 142.00 zone, followed by the 142.50 area and the 143.00 zone. On the other hand, the 141.50 area is the immediate support level for USD/JPY. A break below this level could pave the way towards the 20-day Simple Moving Average (SMA) at the 139.90 area and then to the 139.20 zone.

 

 

 

USD/JPY

Overview
Today last price 141.89
Today Daily Change 0.03
Today Daily Change % 0.02
Today daily open 141.86
 
Trends
Daily SMA20 139.77
Daily SMA50 136.91
Daily SMA100 135.01
Daily SMA200 137.24
 
Levels
Previous Daily High 141.92
Previous Daily Low 139.85
Previous Weekly High 141.92
Previous Weekly Low 139.01
Previous Monthly High 140.93
Previous Monthly Low 133.5
Daily Fibonacci 38.2% 141.13
Daily Fibonacci 61.8% 140.64
Daily Pivot Point S1 140.51
Daily Pivot Point S2 139.15
Daily Pivot Point S3 138.44
Daily Pivot Point R1 142.57
Daily Pivot Point R2 143.27
Daily Pivot Point R3 144.63

 

 

 

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