
USD/JPY stays firmer past 138.00 after BOJ led 50-pip whipsaw with status quo
- USD/JPY remains mildly bid after a knee-jerk movement on the BOJ decision.
- BOJ left monetary policy unchanged; quarterly report cites inflation fears for the time being.
- Risk-aversion jostles with downbeat yields to restrict immediate moves.
- BOJ Governor Kuroda’s speech awaited ahead of the key ECB for fresh impulse.
USD/JPY holds onto the daily gains after the BOJ triggered a 50-pip move as traders seek more clues during early Thursday morning in Europe. In doing so, the yen pair also justifies the market’s indecision ahead of the key monetary policy announcements from the European Central Bank (ECB).
The Bank of Japan (BOJ) matched market expectations by announcing no change in the current monetary policy. In doing so, the Japanese central bank kept the benchmark rate unchanged at -0.10% while keeping the target rate for the Japanese Government Bonds (JGBs) at 0.0%.
The Bank of Japan (BOJ) matched market expectations by announcing no change in the current monetary policy. In doing so, the Japanese central bank kept the benchmark rate unchanged at -0.10% while keeping the target rate for the Japanese Government Bonds (JGBs) at 0.0%.
It’s worth noting, however, that the quarterly release of the BOJ Outlook report does cite the inflation fears and weighs on the yen. Also favoring the USD/JPY buyers are the downbeat GDP forecasts and expectations of higher CPI within the stated report.
Elsewhere, the market’s sour sentiment and cautious mood ahead of the ECB appear to keep the buyers hopeful. However, due to the pre-Fed blackout period, an absence of the Fed policymakers’ comments appears to weigh on the US dollar and the USD/JPY.
That said, the risk-off mood could be linked to the fears of recession emanating from Europe and strong inflation data from the UK and Canada. Also underpinning the US dollar’s safe-haven demand were the Sino-American tensions and China’s covid woes.
While portraying the mood, S&P 500 Futures drop 0.15% intraday, whereas Japan’s Nikkei 225 prints mild gains around 27,700 by the press time. Further, the US 10-year Treasury yields stretch Wednesday’s pullback from the weekly top to 3.01%, down 2.2 basis points (bps) by the press time.
Moving on, a speech from BOJ Governor Haruhiko Kuroda will be the immediate catalyst to watch for the USD/JPY traders ahead of the ECB. Additionally, important will be the chatters surrounding inflation and recession.
That said, the risk-off mood could be linked to the fears of recession emanating from Europe and strong inflation data from the UK and Canada. Also underpinning the US dollar’s safe-haven demand were the Sino-American tensions and China’s covid woes.
While portraying the mood, S&P 500 Futures drop 0.15% intraday, whereas Japan’s Nikkei 225 prints mild gains around 27,700 by the press time. Further, the US 10-year Treasury yields stretch Wednesday’s pullback from the weekly top to 3.01%, down 2.2 basis points (bps) by the press time.
Moving on, a speech from BOJ Governor Haruhiko Kuroda will be the immediate catalyst to watch for the USD/JPY traders ahead of the ECB. Additionally, important will be the chatters surrounding inflation and recession.
Technical analysis
USD/JPY stays on the bull’s radar unless breaking a five-week-old support line and the 21-DMA, respectively, around 137.50 and 136.70.
ADDITIONAL IMPORTANT LEVELS
OVERVIEW | |
---|---|
Today last price | 138.37 |
Today Daily Change | 0.20 |
Today Daily Change % | 0.14% |
Today daily open | 138.17 |
TRENDS | |
---|---|
Daily SMA20 | 136.61 |
Daily SMA50 | 133.25 |
Daily SMA100 | 128.57 |
Daily SMA200 | 121.5 |
LEVELS | |
---|---|
Previous Daily High | 138.38 |
Previous Daily Low | 137.9 |
Previous Weekly High | 139.39 |
Previous Weekly Low | 135.99 |
Previous Monthly High | 137 |
Previous Monthly Low | 128.65 |
Daily Fibonacci 38.2% | 138.08 |
Daily Fibonacci 61.8% | 138.19 |
Daily Pivot Point S1 | 137.92 |
Daily Pivot Point S2 | 137.68 |
Daily Pivot Point S3 | 137.45 |
Daily Pivot Point R1 | 138.39 |
Daily Pivot Point R2 | 138.62 |
Daily Pivot Point R3 | 138.86 |
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