USD/JPY rises further above 158.00 as US Dollar extends recovery

USD/JPY moves higher above 158.00 amid firm US Dollar.
The US Dollar remains firm as the Fed restricts a number of rate cuts this year to one.
The Japanese Yen remains vulnerable as the BoJ postponed plans of reduction in bond-buying operations.

Sagar Dua FXStreet

The USD/JPY pair jumps above 158.00 in Tuesday’s European session. The asset strengthens as the US Dollar (USD) recovers strongly after a modest correction. The US Dollar exhibits a strong performance as Federal Reserve (Fed) policymakers continue to reiterate their projection for only one rate cut this year.

On Monday, Philadelphia Fed Bank President Patrick Harker said he sees one cut in benchmark rates this year if his economic forecast plays out, Reuters reported.

On the contrary, financial markets expect that the Fed will deliver two rate cuts by the year-end. Market speculation for rate cuts twice this year strengthened after the Consumer Price Index (CPI) report for May showed that inflation cooled down at a faster pace. This also increased confidence among investors that the progress in the disinflation process has resumed.

Fed policymakers also acknowledged the soft inflation as encouraging. However, officials said that they want to see inflation declining for months before announcing rate cuts.

Meanwhile, investors shift focus to the United States (US) Retail Sales data for May, which will be published at 12:30 GMT. The US Census Bureau is expected to report an increase in the Retail Sales by 0.3% after remaining flat in April.

On the Tokyo front, the Japanese Yen continues to face selling pressure as the Bank of Japan (BoJ) has pushed plans for reducing bond-buying operations to the July meeting. This has deepened fears of limited scope for policy tightening.

This week, investors will focus on Japan’s National Consumer Price Index (CPI) data for May. Annual National CPI excluding Fresh Food is expected to have accelerated to 2.6% from the prior reading of 2.2%.

USD/JPY

Overview
Today last price	158.08
Today Daily Change	0.36
Today Daily Change %	0.23
Today daily open	157.72

Trends
Daily SMA20	156.76
Daily SMA50	155.68
Daily SMA100	152.77
Daily SMA200	150.13

Levels
Previous Daily High	157.96
Previous Daily Low	157.16
Previous Weekly High	158.26
Previous Weekly Low	155.72
Previous Monthly High	157.99
Previous Monthly Low	151.86
Daily Fibonacci 38.2%	157.65
Daily Fibonacci 61.8%	157.46
Daily Pivot Point S1	157.27
Daily Pivot Point S2	156.81
Daily Pivot Point S3	156.46
Daily Pivot Point R1	158.07
Daily Pivot Point R2	158.42
Daily Pivot Point R3	158.87

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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