USD/JPY trades above 146.50 as bulls gear up for another upward move

USD/JPY trades higher around 146.60 despite the market caution.
US Dollar (USD) experiences support as investors are still pricing in the odds of a rate hike.
Japan's Household Spending data showed the worst drop since February, 2021.

Akhtar Faruqui FXStreet

USD/JPY continues the winning streak that started on Friday, trading around 146.60 during the Asian session on Tuesday. The pair is experiencing upward support despite the market caution after the modest employment data from the United States (US) as the likelihood of no interest rate adjustment by the US Federal Reserve (Fed) in the September meeting.

Furthermore, the upward trajectory of the USD/JPY pair could experience support as investors are still factoring in the odds of a quarter basis points (bps) rate hike by the Fed.

However, Japan's disappointing year-on-year Household spending data for July, which was unveiled on Monday, could be contributing to the downward pressure on the Japanese Yen (JPY). The statistics revealed the worst decline since February 2021, with the actual figure registering at -5.0%, notably worse than the anticipated -2.5%. June's figure was -4.2%. This outcome implies that the Bank of Japan (BoJ) may refrain from making any immediate adjustments to its accommodative monetary policy.

US Dollar Index (DXY), which measures the performance of the Greenback against six other major currencies, hovers around 104.10 at the time of writing. The US Dollar (USD) was underpinned by both the steady employment growth in August and the recovery in US Treasury yields. Market participants await the ISM Services PMI for August, scheduled to be released on Wednesday.

USD/JPY: additional important levels

Overview
Today last price	146.52
Today Daily Change	0.03
Today Daily Change %	0.02
Today daily open	146.49

Trends
Daily SMA20	145.58
Daily SMA50	143.29
Daily SMA100	140.64
Daily SMA200	136.87

Levels
Previous Daily High	146.5
Previous Daily Low	146.02
Previous Weekly High	147.38
Previous Weekly Low	144.44
Previous Monthly High	147.38
Previous Monthly Low	141.51
Daily Fibonacci 38.2%	146.32
Daily Fibonacci 61.8%	146.21
Daily Pivot Point S1	146.18
Daily Pivot Point S2	145.86
Daily Pivot Point S3	145.7
Daily Pivot Point R1	146.65
Daily Pivot Point R2	146.81
Daily Pivot Point R3	147.12

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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