USD/JPY climbs to 149.00 on upbeat US data

USD/JPY trades in positive territory near 149.00 on Wednesday. The US Dollar benefits from stronger-than-expected macroeconomic data releases. The Fed will announce monetary policy decisions later in the day.

USD/JPY Technical Overview

Following the bearish action seen earlier in the day, USD/JPY regains its traction and trades at a fresh two-week high at around 149.00 in the American session on Wednesday.

Fundamental Overview

USD gathers strength on robust data

The data from the US showed that employment in the private sector rose by 104,000 in July. This reading followed the 23,000 decrease recorded in June and came in better than the market expectation for an increase of 78,000.

Additionally, the US Bureau of Economic Analysis reported in its first estimate that the US' Gross Domestic Product (GDP) grew at an annual rate of 3% in the second quarter, beating analysts' estimate for an expansion of 2.4%.

Reflecting the positive impact of these data releases on the US Dollar's (USD) valuation, the USD Index was last seen trading at its highest level since late May at 99.52, rising 0.63% on the day.

Later in the session, the Federal Reserve (Fed) will announce monetary policy decisions. The Fed is widely anticipated to leave the policy rate unchanged after the July meeting. The statement language and comments from Chairman Jerome Powell will be scrutinized by investors. According to the CME FedWatch Tool, markets are currently pricing in about 60% probability of a 25 basis points rate cut in September.