The USD/JPY pair shows mixed dynamics in Asian trading, consolidating near 131.70. The US currency remains under pressure after a noticeable decline last Friday, when the instrument retreated from its local highs from December 20. The reason for the strengthening of the negative dynamics was macroeconomic statistics, which strengthened the investors' belief that the US Federal Reserve could ease monetary policy in the near future. However, so far the regulator unequivocally declares at least the preservation of the current "hawkish" rate, not excluding an increase in interest rates in the range of 25 to 50 basis points at the beginning of the year.
In turn, the market expects that closer to the spring of 2023 the Bank of Japan may announce new measures to tighten monetary policy, up to an increase in the interest rate, which has been in the negative zone for a long time. Prime Minister Fumio Kishida, following Japan's Rengo Trade Union Confederation, at a meeting of the country's three largest business lobbies called on companies to raise wages for workers. The official explained that the national economy has high prospects for going into stagflation if wages do not match current inflation rates. In turn, the government intends to allocate about 1.0 trillion yen for the retraining of specialists, as well as to encourage employers who refuse to pay one-time bonuses instead of raising a fixed salary.
The macroeconomic statistics released in Japan on Friday had a slight pressure on the positions of the yen. Jibun Bank Manufacturing PMI fell from 51.7 points to 51.1 points in December with a neutral outlook, and the November Labor Cash Earnings slowed down from 1.4% to 0.5% in annual terms, while analysts expected the dynamics to accelerate up to 1.5%.
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range has consolidated, reflecting the ambiguous nature of trading in the short/middle term. MACD is growing preserving a weak buy signal (located above the signal line). Stochastic, without reaching the level of "80", reversed into a descending plane, reacting to the appearance of a rapid "bearish" dynamics at the end of last week.
Resistance levels: 132.00, 133.00, 133.61, 134.50. | Support levels: 131.00, 130.00, 129.00, 128.00.