• USD/JPY is expected to shift lower to bear 132.00 on a lower consensus for US NFP.
  • Fed policymakers have come forward with a new target of above 4% for interest rates.
  • Japan’s Overall Household Spending has increased significantly to 3.5%.

The USD/JPY pair is declining sharply after facing barricades around 133.00 in the Asian session. The asset has printed a low of 132.77 and is likely to drag further to near 132.00 as investors are expecting a vulnerable performance from the US Nonfarm Payrolls (NFP) data.

After the consensus of 250k job addition in the month of July, economists at JP Morgan predict the US Nonfarm Payrolls (NFP) to come in weaker at 200K in July’s labor market report. In the month of June, the US economy added 372k jobs in the labor market. A continuous slash in job creation data is advocating severe pressure on the labor market. However, the jobless rate will remain stable at 3.6%.

Rising interest rates and its multiplier effects have triggered downside risks in the labor market activities. The corporate players are unable to invest unhesitatingly due to costly dollars. Therefore, lower investment opportunities are unable to accelerate the employment generation process.

The US dollar index (DXY) has surrendered the support of 106.00 despite the higher targets for interest rates by Federal Reserve (Fed) policymakers. Cleveland Fed President Loretta J. Mester is seeing interest rates above 4% as halting the policy tightening program without finding a slowdown in the inflation rate for months is not feasible.

On the Tokyo front, the Overall Household Spending has improved dramatically to 3.5% from the prior release of -0.5% and the expectations of 1.5%. This may support the yen bulls as the economic data is an inflation indicator. A decent improvement in the economic data advocates that the inflation rate may accelerate further. However, the data could be driven majorly by soaring energy bills. Still, to keep the inflation rate above 2%, an increase in Labor Cost Index is imminent.

USD/JPY

Overview
Today last price 132.91
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 132.91
 
Trends
Daily SMA20 136.12
Daily SMA50 134.71
Daily SMA100 130.56
Daily SMA200 122.65
 
Levels
Previous Daily High 134.42
Previous Daily Low 132.76
Previous Weekly High 137.46
Previous Weekly Low 132.5
Previous Monthly High 139.39
Previous Monthly Low 132.5
Daily Fibonacci 38.2% 133.4
Daily Fibonacci 61.8% 133.79
Daily Pivot Point S1 132.31
Daily Pivot Point S2 131.71
Daily Pivot Point S3 130.65
Daily Pivot Point R1 133.97
Daily Pivot Point R2 135.02
Daily Pivot Point R3 135.63

 

 

 

 

 

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