USD/JPY prepares for a fresh rally above 143.50 amid risk-off mood

USD/JPY is expected to extend a rally above 143.50 as market sentiment has dampened.
The US Dollar Index has printed a fresh day's high at 102.70 amid sheer uncertainty in global markets.
Japan’s inflation has unexpectedly softened despite consistent monetary stimulus by the BoJ.

Sagar Dua FXStreet

The USD/JPY pair has witnessed a marginal correction after facing fragile barricades around 143.50 in the early London session. The upside bias for the USD/JPY pair has not faded as the market sentiment is quite negative, which has improved the appeal of the US Dollar Index (DXY).

S&P500 futures have posted significant losses in Asia as investors are worried that extremely restrictive monetary policy from global central banks has accelerated fears of bleak global growth. The overall market mood is quite negative as the Federal Reserve (Fed) is going to raise interest rates further to tame persistent inflation.

The US Dollar Index has printed a fresh day's high at 102.70 amid sheer uncertainty in global markets. As per the CME Fedwatch tool, around 77% chances are in favor of a hawkish interest rate policy by the Fed for the July meeting. The odds for a hawkish July policy are still solid despite tight labor market conditions releasing heat.

On Thursday, the US Department of Labor reported marginally higher initial jobless claims for the week ending June 16. Jobless claims were higher than the consensus for the straight fourth time in a row. The claims were landed at 264K, similar to their prior release and marginally higher than expectations of 260K.

On the Japanese Yen front, inflationary pressures have unexpectedly softened despite consistent monetary stimulus by the Bank of Japan (BoJ). Headline inflation has decelerated to 3.2% while the street was estimating a further boost to 4.1%. Also, it remained lower than the former release of 3.5%. Core inflation that excludes volatile oil and food prices landed at 4.3%, marginally lower than the estimates of 4.4% but remained higher than the former release of 4.1%.

USD/JPY

Overview
Today last price	143.33
Today Daily Change	0.21
Today Daily Change %	0.15
Today daily open	143.12

Trends
Daily SMA20	140.36
Daily SMA50	137.61
Daily SMA100	135.52
Daily SMA200	137.21

Levels
Previous Daily High	143.23
Previous Daily Low	141.61
Previous Weekly High	141.92
Previous Weekly Low	139.01
Previous Monthly High	140.93
Previous Monthly Low	133.5
Daily Fibonacci 38.2%	142.61
Daily Fibonacci 61.8%	142.23
Daily Pivot Point S1	142.08
Daily Pivot Point S2	141.04
Daily Pivot Point S3	140.46
Daily Pivot Point R1	143.69
Daily Pivot Point R2	144.27
Daily Pivot Point R3	145.31

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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