USD/JPY Rises To Near 154.00 Amid Improved US Dollar

USD/JPY extends gains for the second successive session, trading around 154.00 during the European hours. Unsplash The upward correction in the US Dollar (UUP) provides support for the US Dollar, consequently, underpinning the USD/JPY pair. However, the Greenback could face resistance due to investors’ optimism following the softer US labor data on Friday. This development has reignited hopes for potential interest rate cuts by the Federal Reserve (Fed) in 2024.According to Bloomberg, Richmond Federal Reserve (Fed) President Thomas Barkin said on Monday that elevated interest rates would likely restrain economic growth in the United States (US). Meanwhile, higher interest rates help to mitigate inflationary pressures, aligning them more closely with the central bank’s 2% target.Barkin also emphasized that the strong labor market offers the Federal Reserve an opportunity to confirm a sustained decline in inflation before considering adjustments to borrowing costs. However, he cautioned about the persistent inflationary pressures in the housing and services sectors, which pose a risk of sustaining elevated price levels.The US Dollar Index (DXY), which gauges the performance of the US Dollar (USD) against six major currencies, trades higher around 105.20. The weaker US Treasury yields contribute to limiting the advance of the US Dollar. 2-year and 10-year yields on US Treasury bonds stand at 4.80% and 4.45%, respectively, by the press time.In Japan, Masato Kanda, Japan’s top currency diplomat, hinted at potential measures to address excessive market fluctuations earlier on Tuesday. Last week, the Japanese Yen (FXY) experienced appreciation amid speculation of government intervention by Japanese authorities. Reuters reported data from the Bank of Japan (BoJ) indicating that Japanese authorities may have allocated around ¥6.0 trillion on April 29 and ¥3.66 trillion on May 1 to support the JPY.Masakazu Tokura, Chairman of KEIDANREN (Japan Business Federation), expressed that FX rates should reflect fundamentals in the medium to long term. Tokura stated uncertainty regarding whether authorities intervened but noted that if they did, the timing was opportune, as reported by forexlive.com. USD/JPY

OVERVIEW Today last price 154.15 Today Daily Change 0.24 Today Daily Change % 0.16 Today daily open 153.91

 

TRENDS Daily SMA20 154.63 Daily SMA50 151.99 Daily SMA100 149.32 Daily SMA200 148.48

 

LEVELS Previous Daily High 154.01 Previous Daily Low 152.8 Previous Weekly High 160.32 Previous Weekly Low 151.86 Previous Monthly High 160.32 Previous Monthly Low 150.81 Daily Fibonacci 38.2% 153.55 Daily Fibonacci 61.8% 153.26 Daily Pivot Point S1 153.14 Daily Pivot Point S2 152.37 Daily Pivot Point S3 151.93 Daily Pivot Point R1 154.35 Daily Pivot Point R2 154.78 Daily Pivot Point R3 155.55

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