Categories: Markets

USD/JPY surges to six-day highs above 148.50

USD/JPY surges to six-day highs above 148.50
  • The dollar gains momentum at the beginning of a busy week.
  • USD/JPY rises for the second day in a row.
  • Strong support is building in the 145.00 area.

USD/JPY is rising for the second day in a row and extends the rebound after approaching 145.00. The pair it reached as high as 148.69 on Monday, the highest level since October 25. It remains bullish, above 148.50.

The rises are being driven by an advance in the dollar in the market and a rise in Treasury bond yields. This occurs at the beginning of a week that will include the meeting of the FOMC (decision on Wednesday) and the US employment report (Friday). On Monday the economic calendar looks relatively light ahead, with the Chicago PMI standing out.

The dollar advances at a moderate pace, with gains across the board. The DXY climbs 0.50% while the 10-year bond yields 4.05%, after reaching 4.08%. Wall Street futures point to a negative open with falls of 0.20% on average.

Data released Monday suggests that the intervention in the market by the Japanese authorities to contain the fall of the yen reached 42.2 billion dollars in October. This served to prevent a confirmation above 150.00 for the time being, but did not change the trend. The first intervention had been in September, when the USD/JPY reached 145.00. On October 21st, the pair hit a decade high at 151.93.

The divergence between the monetary policy of the Federal Reserve, which this week is expected to raise the interest rate by 75 basis points, and the Bank of Japan, which on Friday reaffirmed its ultra-accommodative policy, continues to be the fuel for the rally in the USD/JPY. Analysts indicate that as long as this divergence continues as it currently is, the interventions will not be successful.

Technical levels

USD/JPY

Panorama
Last Price Today 148.65
Today’s Daily Change 1.04
Today’s Daily Change % 0.70
Today’s Daily Opening 147.61
Trends
20 Daily SMA 147.05
50 Daily SMA 143.88
100 Daily SMA 139.68
200 Daily SMA 131.18
levels
Previous Daily High 147.86
Previous Daily Minimum 145.98
Previous Maximum Weekly 149.71
Previous Weekly Minimum 145.11
Monthly Prior Maximum 145.9
Previous Monthly Minimum 138.78
Daily Fibonacci 38.2% 147.14
Daily Fibonacci 61.8% 146.7
Daily Pivot Point S1 146.44
Daily Pivot Point S2 145.27
Daily Pivot Point S3 144.56
Daily Pivot Point R1 148.32
Daily Pivot Point R2 149.03
Daily Pivot Point R3 150.2

Source: Fx Street