USD/JPY refreshes day’s low at 127.50 on upbeat Japan’s PMI, Fed’s Powell eyed


  • USD/JPY is hovering around 127.60 on higher-than-expected Jibun Bank PMI.
  •  BOJ’s policymaker is advocating for the continuation of a prudent monetary policy.
  • A hawkish commentary is expected from Fed’s Powell in his speech on Tuesday.

The USD/JPY pair has witnessed a steep fall after failing to sustain above Monday’s high at 128.06. The pair moved higher in early Tokyo to near 128.08 but failing to overstep Monday’s high dragged the asset below 128.60. A downside move has been witnessed in the asset after the IHS Markit came up with strong Jibun Bank Purchase Managers Index (PMI) numbers.  

The Japan’s Manufacturing PMI has landed at 53.2 higher than the estimates of 52 while the Services PMI has been recorded at 51.7 vs. 50.6 recorded earlier. This has underpinned the Japanese yen against the greenback.

Meanwhile, Bank of Japan (BOJ) Koji Nakamura, head of the central bank division overseeing monetary policy drafting stated that investors should brace for continuation of quantitative easing by the BOJ in order to assist the economy. The agenda behind the continuation of a prudent monetary policy is to keep prices rising, which will be beneficial for the economy in the longer horizon.

On the dollar front, the US dollar index (DXY) is juggling above 102.24 as investors await the speech from Federal Reserve (Fed) chair Jerome Powell. Guidance on June’s interest rate decision is expected as it might fade some obscurity over the extent of the rate hike. Taking into account, the elevated inflationary pressures and higher employment levels, hawkish guidance is expected from the Fed policymaker.

USD/JPY

Overview
Today last price 127.58
Today Daily Change -0.33
Today Daily Change % -0.26
Today daily open 127.91
 
Trends
Daily SMA20 129.26
Daily SMA50 125.89
Daily SMA100 120.54
Daily SMA200 116.54
 
Levels
Previous Daily High 128.07
Previous Daily Low 127.16
Previous Weekly High 129.78
Previous Weekly Low 127.02
Previous Monthly High 131.26
Previous Monthly Low 121.67
Daily Fibonacci 38.2% 127.72
Daily Fibonacci 61.8% 127.51
Daily Pivot Point S1 127.36
Daily Pivot Point S2 126.8
Daily Pivot Point S3 126.44
Daily Pivot Point R1 128.27
Daily Pivot Point R2 128.63
Daily Pivot Point R3 129.18

 

 

 

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