USD/JPY jumps 200-pips to cross 130.00 as BoJ holds interest rate, YCC policy intact

USD/JPY rises over 200-pips on the BoJ inaction, eyes the biggest daily jump in seven months.
Bank of Japan leaves benchmark rate, YCC policy unchanged.
Yields rally following the BoJ announcements while equities, stock futures and DXY decline.
BoJ Governor Kuroda’s speech will offer immediate directions ahead of US Retail Sales, PPI.

Anil Panchal FXStreet

USD/JPY prints nearly 2.0% intraday gains as the Bank of Japan (BoJ) surprises markets by taking no action in the latest monetary policy meeting on early Wednesday. The reason could be linked to the market’s high expectations from the Japanese monetary policy officials.

That said, the BoJ announces no changes to their monetary policy settings in December, maintaining rates at -10bps and the 10-yr Japanese Government Bond (JGB) yield target unchanged at 0.00%.

Other than the absence of change in the BoJ’s Yield Curve Control (YCC) policy and the intact rates, the BoJ’s quarterly outlook report also allowed the USD/JPY pair to brace for the biggest daily upside since mid-June 2022.

As per the latest BoJ report, “Heightening of price growth is likely to sustainable price increase involving wage hikes.”

With this, the US Treasury bond yields reverse the early-day rebound to drop towards 3.50% while the S&P 500 futures print 0.30% intraday gains, following the mildly negative marks of the intraday performance. As a result, the US Dollar Index (DXY) marches towards 103.00, up 0.38% intraday but the press time.

Moving on, a speech from BoJ Governor Haruhiko Kuroda will be important for the immediate direction of the USD/JPY pair. However, major attention will be given to the US Retail Sales and PPI for December, expected 0.1% and -0.1% MoM versus -0.6% and 0.3% respective priors, amid the BoJ’s latest disappointment.

Technical analysis

Successful trading the beyond the May 2022 peak surrounding 131.35 becomes necessary for the USD/JPY bulls to retake control.

Additional important levels

Overview
Today last price	130.21
Today Daily Change	2.00
Today Daily Change %	1.56%
Today daily open	128.21

Trends
Daily SMA20	131.65
Daily SMA50	135.59
Daily SMA100	140.42
Daily SMA200	136.67

Levels
Previous Daily High	129.16
Previous Daily Low	127.99
Previous Weekly High	132.87
Previous Weekly Low	127.46
Previous Monthly High	138.18
Previous Monthly Low	130.57
Daily Fibonacci 38.2%	128.44
Daily Fibonacci 61.8%	128.72
Daily Pivot Point S1	127.75
Daily Pivot Point S2	127.28
Daily Pivot Point S3	126.58
Daily Pivot Point R1	128.92
Daily Pivot Point R2	129.63
Daily Pivot Point R3	130.09

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

GBP/USD edges lower below 1.3650, with eyes on US PCE data

GBP/USD trades with a negative bias below 1.3650 in the European session on Wednesday, eroding a part of the previous day's strong gains. The pair, however, remains within striking distance of a six-month top, set last Friday, as traders keenly await the release of the US Personal Consumption Expenditures (PCE) Price Index data for a fresh impetus.

EUR/USD holds lower ground near 1.1650 ahead of key US data

EUR/USD is holding lower ground toward 1.1650 in Wednesday's European session. The US Dollar is recovering modestly amid profit-taking and Middle East uncertainty. US inflation, tracked by the PCE, and another revision of Q2 GDP data should keep investors entertained on Wednesday.

Gold corrects to near $4,620 in countdown to US PCE Inflation data

Gold price is down 0.75% to near $4,620 during the European trading session. The precious metal corrects as the rally pauses after posting a fresh three-month high at $4,697 the previous day, with investors turning cautious ahead of the United States Personal Consumption Expenditure Price Index (PCE) data for July at 12:30 GMT and Federal Reserve Chairman Kevin Warsh’s commentary at the Jackson Hole Symposium.

Hyperliquid eyes record high on rising revenue, ETF inflows

Hyperliquid (HYPE) is up 4% with bulls aiming to advance last week’s 43% gains to a fresh record high above $83.30. The “Everything Exchange” is gaining institutional and user demand, with Exchange Traded Funds recording daily inflows of over $5 million in each of the last two days, while printing daily revenue of over $2.75 million over the last seven days.

US core PCE inflation set to keep pressure on the Federal Reserve to hike interest rates

The United States Bureau of Economic Analysis is expected to publish the Personal Consumption Expenditures (PCE) Price Index data for July on Wednesday, at 12:30 GMT. PCE inflation data for July is expected to reveal that price pressures remain high, well above the Fed’s 2% target.

Canada hits US goods with tariffs; The rate market sees a problem

On September 8, Canada begins charging its own importers 15%, 25% and 50% on roughly 700 lines of American goods. The measure is billed as dollar for dollar, and on the arithmetic of covered trade it is. What it is not is a tax on the United States.