- USD/JPY turns positive for the third day in a row and hits 1-week highs.
- Upbeat US macro data supports the USD and remains support for the move.
- A combination of factors could support the yen and limit the pair’s rise.
The pair USD/JPY receives some offers during the first hours of the North American session and reaches highs of a week in reaction to the encouraging macroeconomic data from the United States. The pair currently sits just above 133.50 and is looking to consolidate this week’s rally move from its lowest level since June 2022.
The US dollar strengthened across the board following the release of the better-than-expected US ADP report, which in turn lifted the USD/JPY for the third day in a row. In fact, US private sector employers added 235,000 jobs in December versus consensus estimates for a reading of 150,000. Additionally, initial claims for jobless benefits unexpectedly fell from 223,000 to 204,000 during the week ending December 30.
This comes after the Federal Open Market Committee (FOMC) meeting minutes were released on Wednesday, and triggers a sharp intraday rally in US Treasury yields. This, in turn, provides a nice boost to the dollar and acts as a tailwind for the USD/JPY pair. Aside from this, the technical buy above 133.00 could also be attributed to the latest leg seen over the past hour or so.
However, information that the Bank of Japan plans to raise its inflation forecasts could support the yen and limit gains. Apart from this, the risk aversion momentum, which tends to benefit the JPY’s relative safe-haven status, could further contribute to keeping the USD/JPY subdued, at least for the time being. This, in turn, warrants some caution on the part of aggressive bullish traders.
Technical levels to watch
USD/JPY
Overview | |
---|---|
Last price today | 133.69 |
Today Change Daily | 1.01 |
today’s daily variation | 0.76 |
today’s daily opening | 132.68 |
Trends | |
---|---|
daily SMA20 | 134.12 |
daily SMA50 | 138.58 |
daily SMA100 | 141.02 |
daily SMA200 | 136.36 |
levels | |
---|---|
previous daily high | 132.72 |
previous daily low | 129.93 |
Previous Weekly High | 134.5 |
previous weekly low | 130.78 |
Previous Monthly High | 138.18 |
Previous monthly minimum | 130.57 |
Fibonacci daily 38.2 | 131.65 |
Fibonacci 61.8% daily | 130.99 |
Daily Pivot Point S1 | 130.83 |
Daily Pivot Point S2 | 128.98 |
Daily Pivot Point S3 | 128.04 |
Daily Pivot Point R1 | 133.63 |
Daily Pivot Point R2 | 134.57 |
Daily Pivot Point R3 | 136.42 |
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.