USD/JPY trades on a positive note above 155.80 on Fed’s hawkish comments

USD/JPY remains firm around 155.85 in Monday’s Asian session.
The BoJ reduced the amount of JGBs that it purchased in its latest operation.
A cautious approach from the US Fed boosts the Greenback broadly.

Lallalit Srijandorn FXStreet

The USD/JPY pair trades on a stronger note near 155.85 during the Asian trading hours on Monday. The hawkish stance from the US Federal Reserve (Fed) has provided some support to the Greenback in recent sessions. Investors will take more cues from the US Consumer Price Index (CPI), Producer, Price Index (PPI), and Retail Sales this week for fresh impetus. Also, Fed Jefferson and Mester are set to speak later on Monday.

Early Monday, the Bank of Japan (BoJ) reduced the amount of Japanese Government Bonds (JGBs) that it purchased in its latest operation in the 5–10-year window to 425bn Yen from 475bn Yen at the previous operation. Ruling party heavyweight Katsunobu Kato said that Japan is seeing conditions fall in place for the central bank to normalize monetary policy. However, the BoJ must monitor economic conditions and coordinate carefully with the government in working out when to raise rates.

The Fed officials delivered a cautious message last week. Financial markets have priced in 5% odds of a June rate cut, down from 10% at the start of last week, while September chances have fallen to 75% from nearly 90% at the beginning of last week. The preliminary University of Michigan Consumer Sentiment Index arrived at 67.4 in May from 77.2 in April, worse than the estimation of 76.0. Furthermore, the one-year inflation outlook climbed to 3.5%, and the five-year outlook rose to 3.1%, the highest level since November 2023. The wide interest rate differential between Japan and the United States continues to undermine the Japanese Yen (JPY) and create a tailwind for the USD/JPY pair.

USD/JPY

Overview
Today last price	155.84
Today Daily Change	0.06
Today Daily Change %	0.04
Today daily open	155.78

Trends
Daily SMA20	155.13
Daily SMA50	152.4
Daily SMA100	149.81
Daily SMA200	148.73

Levels
Previous Daily High	155.9
Previous Daily Low	155.27
Previous Weekly High	155.95
Previous Weekly Low	152.8
Previous Monthly High	160.32
Previous Monthly Low	150.81
Daily Fibonacci 38.2%	155.66
Daily Fibonacci 61.8%	155.51
Daily Pivot Point S1	155.4
Daily Pivot Point S2	155.01
Daily Pivot Point S3	154.76
Daily Pivot Point R1	156.03
Daily Pivot Point R2	156.29
Daily Pivot Point R3	156.67

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.