USD/JPY Forecast: Consolidating losses, at risk of falling
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFERUSD/JPY Current price: 109.82
- Japan Leading Economic Index improved to 99.7 in February, missing expectations.
- The US Federal Reserve will publish the Minutes of its latest meeting.
- USD/JPY is at risk of extending its decline on a break below 109.50.
The USD/JPY pair keeps trading below 110.00, consolidating its latest losses. Demand for the greenback remains subdued as Treasury yields continue to retreat ahead of the US Federal Reserve Minutes of its latest meeting. The yield on the benchmark 10-year Treasury note is currently around 1.64%. Meanwhile, stocks see limited volatility. Wall Street closed with modest losses, Asian shares are down, while European indexes trade mixed around their opening levels.
Japan published the preliminary estimate of the February Leading Economic Index, which improved from 98.5 to 99.7 but missed the market’s expectations of 100.7. The Coincident Index for the same period contracted from 90.3 to 89. The US will publish the February Trade Balance, expected to post a deficit of $-70.5 billion.
USD/JPY short-term technical outlook
The USD/JPY pair is at risk of extending its decline according to near-term readings. The 4-hour chart shows that it is trading just above a mildly bullish 100 SMA but below a firmly bearish 20 SMA. Technical indicators hold near oversold levels without signs of turning higher. A steeper decline could be expected on a break below 109.50, the immediate support level.
Support levels: 109.50 109.15 108.70
Resistance levels: 109.95 109.30 110.60
View Live Chart for the USD/JPY
USD/JPY Current price: 109.82
- Japan Leading Economic Index improved to 99.7 in February, missing expectations.
- The US Federal Reserve will publish the Minutes of its latest meeting.
- USD/JPY is at risk of extending its decline on a break below 109.50.
The USD/JPY pair keeps trading below 110.00, consolidating its latest losses. Demand for the greenback remains subdued as Treasury yields continue to retreat ahead of the US Federal Reserve Minutes of its latest meeting. The yield on the benchmark 10-year Treasury note is currently around 1.64%. Meanwhile, stocks see limited volatility. Wall Street closed with modest losses, Asian shares are down, while European indexes trade mixed around their opening levels.
Japan published the preliminary estimate of the February Leading Economic Index, which improved from 98.5 to 99.7 but missed the market’s expectations of 100.7. The Coincident Index for the same period contracted from 90.3 to 89. The US will publish the February Trade Balance, expected to post a deficit of $-70.5 billion.
USD/JPY short-term technical outlook
The USD/JPY pair is at risk of extending its decline according to near-term readings. The 4-hour chart shows that it is trading just above a mildly bullish 100 SMA but below a firmly bearish 20 SMA. Technical indicators hold near oversold levels without signs of turning higher. A steeper decline could be expected on a break below 109.50, the immediate support level.
Support levels: 109.50 109.15 108.70
Resistance levels: 109.95 109.30 110.60
View Live Chart for the USD/JPY
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.