- USD/JPY is trading neutral at the 145.55 area after reaching a low of 145.10.
- US retail sales released strongly and markets are betting on a Fed rate hike in November.
- Divergences in monetary policy weighed on the yen, which was unable to benefit from strong GDP data.
On Tuesday, the pair USD/JPY traded flat while the dollar seemed to consolidate. On the other hand, the yen continues to trade vulnerable to the dovish stance of the Bank of Japan and the divergence of monetary policies among its peers.
US retail sales showed that the US economy remains strong. Headline Sales rose 0.7%m/m, above 0.4% expected, while excluding autos were also strong, coming in at 1% vs. 0.4% expected.
As for the next meeting of the Federal Reserve (Fed), the prevailing expectation is that there will be no hike in September. However, the odds of a 25 basis point adjustment in November top out at around 40%. That said, attention now turns to Wednesday’s Federal Open Market Committee (FOMC) meeting as investors look to future guidance for clues to get a different perspective on where officials stand.
Despite the good data for the Gross Domestic Product (GDP), the yen continues to trade downward. It was reported on Tuesday that the economy grew 1.5% q/q during the second quarter, an annualized rate of 6% on both counts. On the upside, speculation of a possible Bank of Japan intervention to stop the currency’s slide is the only hope for the Yen, while USD/JPY consolidated above the 145.00 level.
USD/JPY levels
Technical analysis on the daily chart supports a short-term bullish view on USD/JPY. The Relative Strength Index (RSI) maintains its favorable position above the midline, showing a bullish bias. On the other hand, the moving average convergence divergence (MACD) shows green bars, underscoring the strengthening bullish momentum. Furthermore, the pair is sitting above the 20-, 100-, and 200-day SMAs, which suggests that the bulls are firmly in control of the bigger picture.
Support levels: 145.00, 144.70, 144.00.
Resistance levels: 145.70, 146.00, 146.50.
USD/JPY Daily Chart
USD/JPY
Overview | |
---|---|
Last price today | 145.54 |
Today Change Daily | -0.01 |
today’s daily variation | -0.01 |
today’s daily opening | 145.55 |
Trends | |
---|---|
daily SMA20 | 142.09 |
daily SMA50 | 141.82 |
daily SMA100 | 138.65 |
daily SMA200 | 136.47 |
levels | |
---|---|
previous daily high | 145.58 |
previous daily low | 144.65 |
Previous Weekly High | 145 |
previous weekly low | 141.51 |
Previous Monthly High | 144.91 |
Previous monthly minimum | 137.24 |
Fibonacci daily 38.2 | 145.23 |
Fibonacci 61.8% daily | 145.01 |
Daily Pivot Point S1 | 144.94 |
Daily Pivot Point S2 | 144.33 |
Daily Pivot Point S3 | 144.02 |
Daily Pivot Point R1 | 145.87 |
Daily Pivot Point R2 | 146.19 |
Daily Pivot Point R3 | 146.8 |
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.