USD/JPY trades close to more than three-decade high of 152.00, Fed Powell’s speech eyed


  • USD/JPY hovers near historic highs around 152.00 ahead of Fed Powell’s speech.
  • The US ADP Employment report for March has indicated that private labor demand remains strong.
  • Investors remain uncertain over Japan’s wage growth spiral.

The USD/JPY pair rebounds to historic highs of 152.00 in Wednesday’s early American session. The asset is expected to extend its upside by easing expectations that the Federal Reserve (Fed) will begin reducing interest rates from the June meeting.

Fed policymakers don’t see any urgency for rate cuts as labor market conditions are tight and the economic outlook is strong. On Tuesday, Cleveland Fed Bank President Loretta Mester said that the central bank sees more risk in cutting interest rates too early. Fed Mester added: “With labor markets and economic growth both being very solid, we do not need to take that risk”. At the same time, she sees three rate cuts as “reasonable” this year.

Meanwhile, the United States ADP reported upbeat employment data for March. The agency reported that private employers hired 184K new workers against expectations of 148K and the prior reading of 155K (revised up from 140K).

Going forward, investors will focus on Fed Chairman Jerome Powell's speech, which is expected at 16:10 GMT. Powell is expected to provide cues about when the central bank will pivot to rate cuts.

Meanwhile, the Japanese Yen is broadly weak as investors lack confidence that the Bank of Japan (BoJ) will tighten its policy sooner due to uncertainty over the wage growth spiral. Investors seem to have digested fears of Japan’s intervention in the FX domain to support the Japanese Yen.

USD/JPY

Overview
Today last price 151.87
Today Daily Change 0.31
Today Daily Change % 0.20
Today daily open 151.56
 
Trends
Daily SMA20 149.94
Daily SMA50 149.54
Daily SMA100 147.61
Daily SMA200 146.96
 
Levels
Previous Daily High 151.8
Previous Daily Low 151.46
Previous Weekly High 151.97
Previous Weekly Low 151.03
Previous Monthly High 151.97
Previous Monthly Low 146.48
Daily Fibonacci 38.2% 151.59
Daily Fibonacci 61.8% 151.67
Daily Pivot Point S1 151.42
Daily Pivot Point S2 151.27
Daily Pivot Point S3 151.08
Daily Pivot Point R1 151.75
Daily Pivot Point R2 151.94
Daily Pivot Point R3 152.09

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds near 1.0850 after US PMI data

EUR/USD holds near 1.0850 after US PMI data

EUR/USD holds steady at around 1.0850 in the second half of the day on Wednesday. The mixed US PMI data limits the US Dollar's gains but the risk-averse market atmosphere doesn't allow the pair to gather recovery momentum in the American session

EUR/USD News

GBP/USD recovers above 1.2900 as USD struggles to gather strength

GBP/USD recovers above 1.2900 as USD struggles to gather strength

GBP/USD trades modestly higher on the day above 1.2900 on Wednesday. The US Dollar struggles to build on Tuesday's gains following the mixed PMI data for July, allowing the pair to stay in positive territory in the second half of the day.

GBP/USD News

Gold extends recovery, advances above $2,420

Gold extends recovery, advances above $2,420

Gold builds on Tuesday's recovery gains and trades above $2,420 on Wednesday. The pullback seen in the 10-year US Treasury bond yield and the US Dollar after US PMI data help XAU/USD stretch higher during the American trading hours.

Gold News

Bitcoin price volatility expected amid speculation of Kamala Harris joining Bitcoin Conference with Donald Trump

Bitcoin price volatility expected amid speculation of Kamala Harris joining Bitcoin Conference with Donald Trump

Bitcoin price struggles around $66,000 on Wednesday. US spot Bitcoin ETFs experienced minor outflows on Tuesday, coinciding with the continued movement of Mt. Gox funds for repayment, which could exert downward pressure on Bitcoin's price.

Read more

July PMIs point to a very sluggish Eurozone recovery

July PMIs point to a very sluggish Eurozone recovery

This is another report that will not please the ECB. The July PMIs show that the eurozone economy is losing further momentum, as both the manufacturing and services sectors see activity slowing.

Read more

Forex MAJORS

Cryptocurrencies

Signatures