Usdjpy Moves Down As Us Pmi Data Looms

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Usdjpy Moves Down As Us Pmi Data Looms

USD/JPY Moves Down To 147.50 As US PMI Data Looms

The USD/JPY pair has finally ended its 3-day bullish streak and now trades near 147.40 levels in the European session. One thing to note here is that the USD/JPY has retreated from its November 2022 high, which is 9 months.

The recent downturn in the USD/JPY has come after the Masato Kanda from Japan about FX market intervention. He made it clear. There's always an option to intervene in the markets if the sell-off of the JPY continues at the current pace.

Elsewhere, the data from China shows that the services sector is going through a slowdown. This has raised concerns about the economic health of China which also happens to be a major hub of Japanese exports.

Additionally, the BoJ has recently reinforced the view that it will continue with the accommodative monetary policy. The reason behind this is the recent uncertainty that continues to cloud the Japanese economy.

25 bps Rate Hike Before 2023's End

And if we look at the DXY, it is also on the back foot as the markets finally accept the fact that they will not be getting a rate hike from the Fed's September meeting. Despite all of this, the chances of a 25 bps hike before the year 2023 ends still remain on the cards.

Let's not forget that the Fed has already made it clear that interest rates will remain elevated for a long period. So that's one of the major factors that support the yields of the US T-bonds, which helps the USD in return.

Looking ahead, investors will be paying close attention to the ISM PMI from the USA as well as the PMI from major economies. This will allow the investors to take an in-depth look at the US economy and thus has the potential to impact the USD/JPY near to medium-term direction.

For now, the 20 SMA on the USD/JPY daily is near 145.8, while the 50 SMA hovers near 143.36. Furthermore, the 100 SMA and the 200 SMA are present at 140.78 and 136.91 respectively.

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