USD/JPY Rallies Above 146.00 As The BoJ Cools Hopes Of An Imminent Policy Shift
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- The Yen dives as on dovish comments by BoJ officials.
- Dwindling hopes of Fed cuts are underpinning support for the USD.
- USD/JPY is likely to find resistance at the 146.85 area.
The US Dollar is extending its recovery, as comments from BoJ officials have poured cold water on investors’ expectations that the bank could end its ultra-loose policy after their December meeting.
Dovish comments from BoJ officials hit the Yen
News reports citing Bank of Japan’s officials suggest little need to end the negative rates policy, as there is not enough evidence that wage growth would support sustainable inflation.
This has provided an additional impulse to the pair, already on recovery after Friday’s US Nonfarm Payrolls report.
The US economy created more jobs than expected in November, unemployment receded and wage inflation accelerated. The evidence of a resilient US labor market crushed market expectations of Fed rate cuts in early 2024 and sent US yields and the US Dollar higher.
USD/JPY approaches a key resistance area at 146.75
The pair is now testing a previous support level at the 146.30 area. Beyond here, the 50% retracement of the pair’s decline from mid-November high meets trendline resistance at 146.85. The pair is likely to meet strong resistance at that level.
On the downside, supports are 145.30 and 143.75.
Technical levels to watch
USD/JPY
| OVERVIEW | |
|---|---|
| Today last price | 146.36 |
| Today Daily Change | 1.37 |
| Today Daily Change % | 0.94 |
| Today daily open | 144.99 |
| TRENDS | |
|---|---|
| Daily SMA20 | 148.41 |
| Daily SMA50 | 149.29 |
| Daily SMA100 | 147.48 |
| Daily SMA200 | 142.34 |
| LEVELS | |
|---|---|
| Previous Daily High | 145.23 |
| Previous Daily Low | 142.5 |
| Previous Weekly High | 147.5 |
| Previous Weekly Low | 141.64 |
| Previous Monthly High | 151.91 |
| Previous Monthly Low | 146.67 |
| Daily Fibonacci 38.2% | 144.18 |
| Daily Fibonacci 61.8% | 143.54 |
| Daily Pivot Point S1 | 143.25 |
| Daily Pivot Point S2 | 141.51 |
| Daily Pivot Point S3 | 140.52 |
| Daily Pivot Point R1 | 145.98 |
| Daily Pivot Point R2 | 146.97 |
| Daily Pivot Point R3 | 148.71 |
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