USD/JPY flat lines below 158.00, bulls turn cautious amid subdued USD price action

FXStreet
Updated Jun 19, 2024 01:19
Mitrade
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Source: DepositPhotos

■  USD/JPY consolidates its recent gains to the highest level since late April.

■  The BoJ April meeting minutes fail to provide any impetus to the major.

■  Tuesday’s disappointing US data weigh on the USD and cap the upside.


The USD/JPY pair is seen oscillating in a narrow band during the Asian session on Wednesday and currently trading just below the 158.00 round-figure mark. Spot prices, meanwhile, move little following the release of the Bank of Japan (BoJ) April meeting minutes and remain well within the striking distance of the highest level since late April retested the previous day.


The minutes revealed that BoJ board members debated the risks associated with the impact of weak Japanese Yen (JPY) on the underlying inflation and flagged the chance of raising interest rates sooner than expected if inflation overshoots. This, however, does little to impress the JPY bulls or provide any meaningful impetus to the USD/JPY pair, though subdued US Dollar (USD) price action continues to act as a headwind for spot prices. 


The USD Index (DXY), which tracks the Greenback against a basket of currencies, hangs near the weekly low touched in the aftermath of weaker US Retail Sales released on Tuesday. The data pointed to signs of exhaustion among US consumers, lifting bets for an imminent rate cut by the Federal Reserve (Fed) later this year. This led to the overnight decline in the US Treasury bond yields and keeps the USD bulls on the defensive. 


Meanwhile, the Bank of Japan (BoJ) Governor Kazuo Ueda's hawkish remarks on Tuesday, saying that the central bank could raise rates in July depending on economic data, underpin the JPY. Apart from this, speculations that Japanese authorities might intervene to prop up the domestic currency further contribute to capping the USD/JPY pair. Hence, any subsequent move up might continue to attract some sellers and remain limited.


USD/JPY


Overview
Today last price 157.91
Today Daily Change 0.04
Today Daily Change % 0.03
Today daily open 157.87
 
Trends
Daily SMA20 156.84
Daily SMA50 155.8
Daily SMA100 152.87
Daily SMA200 150.18
 
Levels
Previous Daily High 158.23
Previous Daily Low 157.52
Previous Weekly High 158.26
Previous Weekly Low 155.72
Previous Monthly High 157.99
Previous Monthly Low 151.86
Daily Fibonacci 38.2% 157.96
Daily Fibonacci 61.8% 157.79
Daily Pivot Point S1 157.51
Daily Pivot Point S2 157.16
Daily Pivot Point S3 156.8
Daily Pivot Point R1 158.23
Daily Pivot Point R2 158.59
Daily Pivot Point R3 158.94

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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