USD/JPY stands neutral above 149.50, markets await Retail Sales figures from the US

USD/JPY continues to side-ways trade in the 149.00 - 150.00 range, as investors await fresh catalysts.
Retail Sales from the US from September will be released on Tuesday.
BoJ's prospects of intervening in markets to stop the Yen’s depreciation may limit the upward potential.
The Fed’s dovish narrative is taking relevance and is limiting the USD’s upside potential.

Patricio Martín FXStreet

On Monday, the USD/JPY traded with mild gains above 149.50, mainly driven by the JPY’s weakness. Likewise, the Greenback is performing poorly against its rivals as its DXY index consolidates last week’s gains after rising above 106.00.

Retail Sales figures from the US for September will provide markets with additional data on the US economy to continue placing their bets on the Federal Reserve's (Fed) future decisions. In the meantime, according to the World Interest Rates Probabilities (WIRP), tightening expectations are low, mainly driven by the Fed’s doves, which refrained from committing to another rate hike in last week's Fed meeting minutes, but the US is still not showing signs of cooling down which would push the Fed to hike one more time in this tightening cycle.

Comments from Thomas Harker were interpreted as dovish on Monday after he reiterated that the Fed is “likely” done with rate hikes. Several other officials will be on the wires on Tuesday and Wednesday, including Michelle Bowman, Christopher Waller, and John Williams, and dovish comments may add selling pressure to the green currency.

The Bank of Japan (BoJ) is attached to its dovish stance, and markets are pricing in a liftoff in 2024, so monetary policy divergences between its peers leave the JPY vulnerable. On the positive side, investors are expecting the bank to intervene to stop the depreciation of the Yen, which could limit the potential of the upward movements of the pair.

USD/JPY Levels to watch

The USD/JPY suggests a neutral to bearish technical outlook in the short-term as bullish momentum wanes. The Relative Strength Index (RSI) has turned flat above its midline, while the Moving Average Convergence (MACD) displays stagnant red bars. The pair is still above the 20,100,200-day Simple Moving Averages (SMA), however, highlighting the continued dominance of bulls on the broader scale.

Support levels: 149.00 (20-day SMA), 148.00, 147.30.

Resistance levels: 150.00, 150.50, 151.00.

USD/JPY Daily Chart

USD/JPY

Overview
Today last price	149.59
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	149.59

Trends
Daily SMA20	148.88
Daily SMA50	147.18
Daily SMA100	144.23
Daily SMA200	138.87

Levels
Previous Daily High	149.83
Previous Daily Low	149.45
Previous Weekly High	149.83
Previous Weekly Low	148.16
Previous Monthly High	149.71
Previous Monthly Low	144.44
Daily Fibonacci 38.2%	149.6
Daily Fibonacci 61.8%	149.69
Daily Pivot Point S1	149.42
Daily Pivot Point S2	149.25
Daily Pivot Point S3	149.04
Daily Pivot Point R1	149.79
Daily Pivot Point R2	150
Daily Pivot Point R3	150.17

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

EUR/USD struggles to build on recent rebound, holds above 1.1550

EUR/USD trades marginally lower on the day but holds above 1.1550 in the American session, following Thursday's rebound. The pair holds near its intraday high as the US Dollar remains pressured by hopes the Middle East conflict will soon come to an end.

GBP/USD hovers around 1.3400 as investors await war clarity

GBP/USD remains near its daily open, not far from 1.3400, in the second half of Friday's session. The US Dollar lost its previous intraday strength and weakens as investors await clarity on the US-Iran war.

Gold stabilizes above $4,200 as wait-and-see continues

After rising more than 3% on Thursday, Gold (XAU/USD) stabilized around the $4,200 mark in the American session on Friday. The US dollar seesaws between gains and losses, but remains within familiar levels as investors remain skeptical yet hopeful about a resolution to the Middle East conflict.

Crypto Today: Bitcoin, Ethereum, XRP recovery slows amid incessant capital outflows

The cryptocurrency remains in a broader corrective bias on Friday, despite majors such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) holding slightly higher than early-week support levels.

SpaceX launches 24% higher at Friday debut

Space Exploration Technologies (SPCX), aka SpaceX, zoomed 24% higher soon after the start of its first IPO trading day on Friday. Shares of the rocket and artificial intelligence (AI) company founded by Elon Musk began trading at about 11:46 am EST and quickly gained speed.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.