USD/JPY approaching 157.40 amidst broad Yen weakness

Source Fxstreet
May 29, 2024 01:00
  • USD/JPY climbed on Wednesday as JPY continues to sell off.
  • Yen traders looking ahead to Tokyo CPI inflation on Friday.
  • US GDP, PCE inflation key data this week for rate-cut hopefuls.

USD/JPY drifted into the high end on Tuesday, testing towards 157.40 as broad-market weakness in the Japanese Yen (JPY) sends Yen pairs broadly higher. Japanese Tokyo Consumer Price Index (CPI) inflation remains a key print for Yen traders this week, with US growth and inflation figures a high-impact release for investors looking for signs of rate cuts from the Federal Reserve (Fed).

Yen traders will be looking ahead to Friday’s Japanes Tokyo CPI inflation, and Core Tokyo CPI inflation is broadly expected to climb to 1.9% from 1.6%. The Bank of Japan (BoJ), concerned about a return to sub-target inflation, has steadfastly avoided raising interest rates, keeping the Yen’s rate differential with other major central banks much higher than before, sending the JPY even lower despite possible “Yenterventions” in recent weeks.

US Gross Domestic Product (GDP) and Personal Consumption Expenditure (PCE) Price Index inflation, due on Thursday and Friday, respectively, are key prints this week as investors continue to look for signs of Fed rate cuts. US Annualized Q1 GDP is expected to ease to 1.3% from the previous 1.6%, while Core PCE Price Index inflation is forecast to hold steady at 0.3% MoM. 

 

USD/JPY technical outlook

USD/JPY continues to drift into the top end, approaching the 158.00 handle after closing in the green for all but four of the last 17 consecutive trading days. Bullish pressure is keeping the pair pinned deep in bull country, trading firmly on the north side of the 200-day Exponential Moving Average (EMA) at 148.89.

USD/JPY daily chart

USD/JPY

Overview
Today last price 157.34
Today Daily Change 0.16
Today Daily Change % 0.10
Today daily open 157.18
 
Trends
Daily SMA20 155.63
Daily SMA50 154.22
Daily SMA100 151.43
Daily SMA200 149.41
 
Levels
Previous Daily High 157.2
Previous Daily Low 156.58
Previous Weekly High 157.2
Previous Weekly Low 155.5
Previous Monthly High 160.32
Previous Monthly Low 150.81
Daily Fibonacci 38.2% 156.96
Daily Fibonacci 61.8% 156.82
Daily Pivot Point S1 156.77
Daily Pivot Point S2 156.37
Daily Pivot Point S3 156.16
Daily Pivot Point R1 157.39
Daily Pivot Point R2 157.6
Daily Pivot Point R3 158.01

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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