- USD/JPY has found fragile support around 139.10 after the recovery of the DXY Dollar Index.
- Investors appear taken aback by crucial US economic data as it has split expectations about the Fed’s monetary policy.
- The BoJ Governor has pledged to continue quantitative easing until the inflation target is achieved.
The pair USD/JPY has found intermediate support around the 139.00 level during the European session on Tuesday. Bearish momentum in the pair has stalled near that level as the DXY Dollar Index has shown a decent recovery move after defending crucial support around 103.80.
S&P 500 futures post slight losses during the session, reflecting the cautiousness of the markets. Investors appear puzzled after the release of crucial US economic data for May as They have divided the expectations on the interest rate policy of the Federal Reserve (Fed) for the month of June.
The DXY index is struggling to stay above 104.00. Investors are divided on the Fed’s monetary policy, as The steady addition of new payrolls to the labor market is expected to keep spending levels at a peak, leading to demand-driven inflation. Weakening economic activity supports a neutral interest rate policy to prevent the US economy from falling into recession.
Meanwhile, US commercial bank loans remain higher despite the Fed’s interest rate hike. In an interview with CNBC on Monday, the Managing Director of the International Monetary Fund (IMF) , Kristalina Georgieva, stated that “we still do not see a significant slowdown in lending”adding: “There is, but not on the scale that would lead the Fed to cut them.”
The Japanese yen continues to strengthen despite dovish comments from the Bank of Japan (BoJ) governor, Kazuo Ueda, who has said that “the central bank will continue quantitative easing until the inflation target is achieved”. In addition, Ueda has added that the changes are gradually emerging to a deflationary mindset that prices and wages are difficult to increase.
USD/JPY technical levels
|Last price today||139.21|
|Today Daily Variation||-0.37|
|today’s daily variation||-0.27|
|today’s daily opening||139.58|
|previous daily high||140.45|
|previous daily low||139.25|
|Previous Weekly High||140.93|
|previous weekly low||138.43|
|Previous Monthly High||140.93|
|Previous monthly minimum||133.5|
|Fibonacci daily 38.2||139.71|
|Fibonacci 61.8% daily||139.99|
|Daily Pivot Point S1||139.07|
|Daily Pivot Point S2||138.56|
|Daily Pivot Point S3||137.87|
|Daily Pivot Point R1||140.27|
|Daily Pivot Point R2||140.96|
|Daily Pivot Point R3||141.48|
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.