Forex News

13:19:59 28-03-2024

USD/JPY consolidates above 151.00 ahead of US core PCE Inflation for fresh cues

  • USD/JPY trades back and forth above 151.00 ahead of the Fed’s preferred inflation gauge.
  • Risk-perceived currencies are facing the heat of uncertainty ahead of the US core PCE for February.
  • Investors need more clarity about BoJ’s intervention to support the Japanese Yen.

The USD/JPY pair trades sideways in a narrow range around 151.30 in the London session on Thursday. The asset is expected to remain stuck in a tight range as investors are expected to build fresh positions after getting more clarity on the Bank of Japan’s stealth intervention plans in the FX domain to support weakening Japanese Yen. Also, the United States core Personal Consumption Expenditure Price Index (CPE) data, which will be published on Friday, is expected to keep investors on the sidelines.

The annual inflation gauge is expected to have grown at a steady pace of 2.8%. The monthly underlying inflation data is forecasted to have increased slowly by 0.3% from January’s reading of 0.4%. Investors will keenly focus on the inflation data to gauge when the Federal Reserve (Fed) may begin trimming interest rates.

An asset-specific action is observed in global markets as risk-sensitive currencies have been hit hard amid uncertainty ahead of US core PCE for February. While S&P 500 futures are unchanged. The US Dollar Index (DXY) refreshes six-week high at 104.72. 10-year US Treasury yields have rebounded to 4.23%.

The US Dollar strengthens as Fed Governor Christopher Waller’s commentary on the interest guidance negatively impacts Fed expectations for rate cuts in the June meeting. Fed Waller said there is no need to rush for policy rate cuts due to sticky price pressures and a strong economic outlook. Waller added, “Further progress expected on lowering inflation "will make it appropriate" for the Fed to begin reducing the target range for the federal funds rate this year," reported Reuters.

The expectations for BoJ’s intervention in the FX domain have increased as investors lack confidence that Japan’s central bank will not be able to move forward with positive interest rates due to an uncertain wage growth outlook. However, the summary of opinions at the BoJ's March meeting, released on Thursday, showed that many policymakers saw the need to go slow in phasing out ultra-loose monetary policy, Reuters reported.

USD/JPY

Overview
Today last price 151.4
Today Daily Change 0.08
Today Daily Change % 0.05
Today daily open 151.32
 
Trends
Daily SMA20 149.67
Daily SMA50 149.28
Daily SMA100 147.6
Daily SMA200 146.8
 
Levels
Previous Daily High 151.97
Previous Daily Low 151.03
Previous Weekly High 151.86
Previous Weekly Low 148.91
Previous Monthly High 150.89
Previous Monthly Low 145.9
Daily Fibonacci 38.2% 151.39
Daily Fibonacci 61.8% 151.61
Daily Pivot Point S1 150.91
Daily Pivot Point S2 150.49
Daily Pivot Point S3 149.96
Daily Pivot Point R1 151.86
Daily Pivot Point R2 152.39
Daily Pivot Point R3 152.8

 

 

News provided by the portal FXStreet
Contacts
Close
Up