|

USD/JPY retreats further from two-week high, slides below 133.00 post-US PCE Price Index

  • USD/JPY retreats from a two-week high, though lacks follow-through selling.
  • The USD pares intraday gains on softer inflation data and acts as a headwind.
  • The risk-on environment undermines the safe-haven JPY and to lends support.

The USD/JPY pair surrenders a major part of its intraday gains to a two-week high and retreats below the 133.00 round-figure mark during the early North American session on Friday.

The modest intraday US Dollar (USD) uptick loses steam after the US Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) Price Index decelerated to a 5% YoY rate in February from 5.3% previous. Adding to this, the Core PCE Price Index - the Fed's preferred inflation gauge - unexpectedly edged lower to a 4.6% YoY rate from 4.7% in January. The data adds to the uncertainty about the Fed's rate-hike path, which acts as a headwind for the Greenback and prompts some intraday selling around the USD/JPY pair.

Bearish traders further took cues from a modest pullback in the US Treasury bond yields, which results in the narrowing of the US-Japan rate differential and benefits the Japanese Yen (JPY). That said, the underlying bullish tone around the global equity markets - amid easing fears of a full-blown banking crisis - continues to undermine the safe-haven JPY and remains supportive of a mildly positive tone around the USD/JPY pair. This, in turn, warrants caution for bearish traders and before positioning for any meaningful corrective pullback.

Friday's US economic docket also features the release of the Chicago PMI and revised Michigan Consumer Sentiment Index, though might do little to provide any meaningful impetus. Nevertheless, the USD/JPY pair still seems poised to register weekly gains for the first time in the previous five and remains at the mercy of the USD price dynamics heading into the weekend.

Technical levels to watch

USD/JPY

Overview
Today last price133.19
Today Daily Change0.52
Today Daily Change %0.39
Today daily open132.67
 
Trends
Daily SMA20133.42
Daily SMA50132.88
Daily SMA100133.93
Daily SMA200137.33
 
Levels
Previous Daily High132.97
Previous Daily Low132.21
Previous Weekly High133
Previous Weekly Low129.64
Previous Monthly High136.92
Previous Monthly Low128.08
Daily Fibonacci 38.2%132.5
Daily Fibonacci 61.8%132.68
Daily Pivot Point S1132.26
Daily Pivot Point S2131.85
Daily Pivot Point S3131.5
Daily Pivot Point R1133.02
Daily Pivot Point R2133.38
Daily Pivot Point R3133.79

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

More from Haresh Menghani
Share:

Editor's Picks

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary. 

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.