USD/JPY steadily climbs to 150.75-80 area, fresh daily high after weaker Japanese GDP

USD/JPY attracts fresh buyers on Wednesday and draws support from a combination of factors.
The worse-than-expected Japanese GDP print and a positive risk tone seem to undermine the JPY.
The USD reverses a part of Tuesday’s US CPI-inspired slump and acts as a tailwind for the major.

Haresh Menghani FXStreet

The USD/JPY pair regains positive traction during the Asian session on Wednesday and reverses a part of the previous day's heavy losses to the 150.15 area, or a one-week low. The intraday buying picks up pace following the worse-than-expected release of the Japanese GDP print and lifts spot prices to a fresh daily peak, around the 150.75-150.80 region in the last hour.

According to the preliminary estimates, Japan's economy slowed significantly and shrank at an annualized pace of 2.1% in the July-September period – marking the first contraction in three quarters. This comes on top of a more dovish stance adopted by the Bank of Japan (BoJ) and undermines the Japanese Yen (JPY). Apart from this, the risk-on mood is seen as another factor weighing on the safe-haven JPY, which, along with a modest US Dollar (USD) uptick, acts as a tailwind for the USD/JPY pair.

The upside, however, seems limited in the wake of expectations that the Federal Reserve (Fed) is done raising rates. The US Bureau of Labor Statistics (BLS) reported on Tuesday that the headline US CPI was unchanged in October and the yearly rate decelerated from 3.7% in September to 3.2% – the smallest rise in two years. This combined with other US macro data released this month, showing jobs and wage growth cooling in October, reaffirms bets that the Fed has ended its policy tightening cycle.

Market participants now expect the Fed to keep rates on hold and start cutting rates in May 2024. This led to the overnight sharp decline in the US Treasury bond yields, which might hold back the USD bulls from placing aggressive bets and keep a lid on any meaningful appreciating move for the USD/JPY pair. Traders now look to the US economic docket, featuring the release of the Producer Price Index (PPI), monthly Retail Sales figurs and the Empire State Manufacturing Index, for a fresh imptus.

Technical levels to watch

USD/JPY

Overview
Today last price	150.76
Today Daily Change	0.52
Today Daily Change %	0.35
Today daily open	150.24

Trends
Daily SMA20	150.36
Daily SMA50	149.27
Daily SMA100	146.32
Daily SMA200	141.1

Levels
Previous Daily High	151.83
Previous Daily Low	150.16
Previous Weekly High	151.6
Previous Weekly Low	149.35
Previous Monthly High	151.72
Previous Monthly Low	147.32
Daily Fibonacci 38.2%	150.79
Daily Fibonacci 61.8%	151.19
Daily Pivot Point S1	149.65
Daily Pivot Point S2	149.07
Daily Pivot Point S3	147.98
Daily Pivot Point R1	151.33
Daily Pivot Point R2	152.42
Daily Pivot Point R3	153

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD sits near monthly high, around 0.7035 on hawkish RBA

AUD/USD trades around 0.7030-0.7035 in the Asian session on Thursday, near its monthly top, as recent hawkish comments from RBA officials continue to underpin the Australian Dollar. The US Dollar, meanwhile, struggles to lure buyers amid further declines in US bond yields, adding support to the pair. However, Fed rate-hike bets and geopolitical uncertainty help limit losses for the safe-haven buck, warranting caution for Aussie bulls.

USD/JPY remains confined in a familiar range; holds steady above 158.00

USD/JPY extends its consolidative price action through Thursday's Asian session, trading just above 158.00 amid diverging forces. Uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. The US Dollar, meanwhile, languishes near multi-week low amid declining US bond yields. Furthermore, looming intervention risks limit JPY losses and cap the pair. Traders also seem hesitant ahead of the Fed and BoJ meetings next week.

Gold hangs near one-week low; eyes $4,100 break amid Fed hike bets

Gold attracts fresh sellers in Thursday’s Asian session, sliding closer to a one-week low touched the previous day. Firming expectations for an imminent Fed rate hike, bolstered by oil-driven inflation risks, weigh on the non-yielding bullion. Meanwhile, declining US bond yields counter geopolitical uncertainty, keeping US Dollar bulls on the defensive. This helps XAU/USD defend $4,100.

Dogecoin Labs launches, resistance looms

Dogecoin (DOGE) Labs launched Wednesday in partnership with the Dogecoin Foundation, bringing together several product teams and technologies to expand the use of the memecoin (DOGE) across payments, decentralized finance (DeFi) and consumer applications. The launch will consolidate MyDoge, DogeOS and Such App under one business, led by Jordan Jefferson, founder of MyDoge and DogeOS.

What the midterm elections mean for Treasury yields, the Dollar and Gold

Democrats are priced to take the House, so November 3 comes down to the Senate and how much Washington can borrow without the other party. Treasury yields will show the answer first, then the Dollar and Gold. On November 3, Americans vote for all 435 House seats and 35 Senate seats. For bond prices, the result comes down to one thing: how much the government will borrow over the next two years.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.