- USD/JPY is likely to drag to near 134.00 as investors have turned precautionary ahead of US Services PMI data.
- Fed’s Evans has favored a higher interest rate peak despite a slowdown in the rate hike pace.
- An upbeat US Services New Orders Index data could propel short-term inflation expectations.
The USD/JPY pair has attempted a break above the immediate hurdle of 134.50 in the Tokyo session. The asset is expected to remain on the tenterhooks as investors await United States Services PMI data for fresh impetus. The risk profile is still optimistic as Federal Reserve (Fed) policymakers don’t call for continuing the current interest rate hike pace.
Chicago Fed President Charles Evans said on Friday, "We are probably going to have a slightly higher peak to Fed policy rate even as we slow pace of rate hikes," as reported by Reuters.
The US Dollar Index (DXY) is hovering around its immediate support of 104.50 and is looking to test Friday’s low around 104.40. The risk appetite theme is likely to keep hammering the US Dollar bulls amid a significant decline in safe-haven appeal.
Meanwhile, 10-year US Treasury yields have rebounded after dropping below 3.50% in the Asian session as the market mood is turning precautionary ahead of the US Services PMI data. Per the projections, the economic data is seen at 55.6, lower than the prior release of 54.4.
In the US Services PMI gamut, the New Orders Index is seen solid at 58.5 against the former release of 56.5. This indicates robust demand ahead, which could de-anchored short-term inflation expectations and, henceforth, ruin the risk-on profile.
On the Tokyo front, Bank of Japan (BOJ) Governor Haruhiko Kuroda highlighted the risk of a slowdown in inflation from CY2023. This may propel the BOJ to continue with policy easing in order to keep inflation near the targeted rate of 2%. Going forward, the Overall Household Spending data will be of utmost importance. The economic data is expected to improve to 3.4% from the prior release of 2.3% on an annual basis.
|Today last price||134.63|
|Today Daily Change||0.32|
|Today Daily Change %||0.24|
|Today daily open||134.31|
|Previous Daily High||135.98|
|Previous Daily Low||133.62|
|Previous Weekly High||139.9|
|Previous Weekly Low||133.62|
|Previous Monthly High||148.82|
|Previous Monthly Low||137.5|
|Daily Fibonacci 38.2%||134.52|
|Daily Fibonacci 61.8%||135.08|
|Daily Pivot Point S1||133.29|
|Daily Pivot Point S2||132.28|
|Daily Pivot Point S3||130.93|
|Daily Pivot Point R1||135.65|
|Daily Pivot Point R2||137|
|Daily Pivot Point R3||138.01|
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.