USD/JPY sticks to modest intraday gains above 157.00 mark, over one-week high

USD/JPY attracts buyers for the third straight day and draws support from a combination of factors.
The BoJ policy uncertainty and a weak domestic economy continue to undermine the Japanese Yen.
Reduced Fed rate cut bets lend support to the USD and contribute to the pair’s steady positive move.

Haresh Menghani FXStreet

The USD/JPY pair scales higher for the third straight day – also marking the fourth day of a positive move in the previous five – and climbs to over a one-week high, around the 157.25 area during the Asian session on Tuesday. Spot prices, however, remain below the 157.65-157.70 supply zone as traders seem reluctant ahead of this week's key US macro data and central bank event risks.

The US consumer inflation figures are due for release on Wednesday, which will be followed by the highly-anticipated FOMC monetary policy decision. Investors will look for cues about the likely timing when the Federal Reserve (Fed) will begin cutting interest rates. This, in turn, will play a key role in influencing the near-term US Dollar (USD) price dynamics and provide some meaningful impetus to the USD/JPY pair ahead of the Bank of Japan (BoJ) decision on Friday.

Market participants remain uncertain if the Japanese central bank will announce a reduction in the monthly government bond purchases amid a weaker economy. In fact, the Cabinet Office reported on Monday that contracted by 0.5% during the first quarter and by the 1.8% YoY rate. This, along with a stable performance around the equity markets, is seen undermining the Japanese Yen (JPY) and turning out to be a key factor acting as a tailwind for the USD/JPY pair.

The USD, on the other hand, stands tall near its highest level since May 14 touched on Monday and continues to draw support from growing acceptance that the Federal Reserve (Fed) might keep interest rates higher for longer. The expectations were fueled by the stronger-than-expected US jobs data released on Friday. This, in turn, favors the USD bulls and supports prospects for an extension of the USD/JPY pair's recent rise from the 50-day Simple Moving Average (SMA).

USD/JPY

Overview
Today last price	157.21
Today Daily Change	0.18
Today Daily Change %	0.11
Today daily open	157.03

Trends
Daily SMA20	156.39
Daily SMA50	155.12
Daily SMA100	152.3
Daily SMA200	149.88

Levels
Previous Daily High	157.18
Previous Daily Low	156.69
Previous Weekly High	157.47
Previous Weekly Low	154.55
Previous Monthly High	157.99
Previous Monthly Low	151.86
Daily Fibonacci 38.2%	156.99
Daily Fibonacci 61.8%	156.88
Daily Pivot Point S1	156.75
Daily Pivot Point S2	156.48
Daily Pivot Point S3	156.26
Daily Pivot Point R1	157.25
Daily Pivot Point R2	157.46
Daily Pivot Point R3	157.74

Author

Haresh Menghani

FXStreet

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

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