USD/JPY rises to 157.70 as Fed’s hawkish narrative improves US Dollar’s appeal


  • USD/JPY moves higher to 157.70 as Fed policymakers see only one rate cut this year.
  • The USD Index will dance to the tunes of the US Retail Sales data for May.
  • The BoJ postpones tapering the amount of bond-buying to the July meeting.

The USD/JPY pair jumps to 157.70 in Monday’s European session as the US Dollar (USD) holds strength due to a hawkish outlook on interest rates by Federal Reserve’s (Fed) officials. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, clings to gains near 105.55.

Fed policymakers continue to argue in favor of lowering interest rates only once this year amid fears of reacceleration in price pressures. Officials worry that progress in the disinflation process could remain slow due to strong labor market conditions. United States (US) consumer inflation cooled more than expected in May after an expected decline in April.

Though Fed policymakers want more soft inflation data to get convinced for rate cuts, the confidence of financial markets has increased significantly for early rate cuts. The CME FedWatch tool shows high possibility of two rate cuts this year and policymakers will return to policy-normalization from the September meeting.

This week, investors will focus on the US monthly Retail Sales data for May to get more cues on the interest rate outlook. The Retail Sales data, which is a leading indicator of consumer spending, is expected to have increased by 0.3% after remaining stagnant in April.

Meanwhile, the Japanese Yen weakens as taper tantrum plans have been postponed by the Bank of Japan (BoJ) to the July’s meeting. The BoJ didn’t rule out expectations of more rate hikes in July as weak Japanese Yen has boosted import prices, which is driving inflation higher.

USD/JPY

Overview
Today last price 157.64
Today Daily Change 0.25
Today Daily Change % 0.16
Today daily open 157.39
 
Trends
Daily SMA20 156.68
Daily SMA50 155.56
Daily SMA100 152.66
Daily SMA200 150.07
 
Levels
Previous Daily High 158.26
Previous Daily Low 156.81
Previous Weekly High 158.26
Previous Weekly Low 155.72
Previous Monthly High 157.99
Previous Monthly Low 151.86
Daily Fibonacci 38.2% 157.7
Daily Fibonacci 61.8% 157.36
Daily Pivot Point S1 156.71
Daily Pivot Point S2 156.04
Daily Pivot Point S3 155.27
Daily Pivot Point R1 158.16
Daily Pivot Point R2 158.93
Daily Pivot Point R3 159.6

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD attracts some sellers below 0.6800 ahead of Chinese data

AUD/USD attracts some sellers below 0.6800 ahead of Chinese data

The AUD/USD pair trades on a weaker note around 0.6770, snapping the four-day winning streak during the early Asian session on Monday. The recovery of the US Dollar provides some support to the pair.

AUD/USD News

EUR/USD: The door appears open to extra gains in the near term

EUR/USD: The door appears open to extra gains in the near term

Another auspicious week saw EUR/USD trade with decent gains and extend its positive streak for the third consecutive week, including a visit to the key 1.0900 region for the first time since early June.

EUR/USD News

Gold turns bullish as US data bolster case for Fed rate cut in September

Gold turns bullish as US data bolster case for Fed rate cut in September

Gold gathered bullish momentum and climbed above $2,400 on broad-based USD weakness. Investors expect the Fed to reduce the policy rate in September after soft inflation data. XAU/USD could target a new all-time high once $2,400 is confirmed as support.

Gold News

Shiba Inu erases losses from past week, eyes 18% gains

Shiba Inu erases losses from past week, eyes 18% gains

Shiba Inu traders are anticipating the roll-out of futures contracts, products like Exchange Traded Funds that could boost the asset’s utility. An IBC report shows the contract is expected to be listed post Monday, July 15.

Read more

Trump Assassination Attempt: Gold, stocks set to decline on Republican sweep speculation Premium

Trump Assassination Attempt: Gold, stocks set to decline on Republican sweep speculation

Fist in the air and on with the fight - that has been the historic picture that former President Donald Trump shortly after he survived an assassination attempt on his life. Trump was injured in his ear but seems to have come out stronger politically from the shocking political violence. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures