USD/JPY Forecast: Consolidating losses, lower lows still possible
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: 103.96
- Global stock indexes are under selling pressure as fears took over.
- A scarce macroeconomic calendar exacerbates sentiment-related trading.
- USD/JPY is comfortable sub-104.00, bullish potential well-limited.
The USD/JPY pair trades around 103.90, consolidating weekly losses. The dollar is getting some attention early in the European session as concerns mount and fears rule. Global stocks are down as investors can’t cheer vaccine news. The second wave of the pandemic continues to worsen in the northern hemisphere, and more restrictions are being planned or announced in the US and Europe. Speculative interest is pricing in a steeper economic downturn in Q4.
The Japanese macroeconomic calendar has nothing relevant to offer overnight, although Australian employment data was upbeat. Nevertheless, it fell short of spurring some risk appetite. The US will unveil today Initial Jobless Claims for the week ended November 13, foreseen at 707K, and the November Philadelphia Fed Manufacturing Survey, expected at 22 from 32.3 in the previous month.
USD/JPY short-term technical outlook
The USD/JPY pair has decelerated its decline, but the risk is still skewed to the downside in the near-term. The 4-hour chart shows that it is developing well below all of its moving averages, with the 20 SMA still heading south below the larger ones. Technical indicators are modestly recovering but holding near weekly lows and lacking directional momentum. The risk of a bearish extension could decrease on a recovery above 104.00, but the pair will remain far from bullish.
Support levels: 103.50 103.15 102.80
Resistance levels: 104.00 104.30 104.75
View Live Chart for the USD/JPY
USD/JPY Current price: 103.96
- Global stock indexes are under selling pressure as fears took over.
- A scarce macroeconomic calendar exacerbates sentiment-related trading.
- USD/JPY is comfortable sub-104.00, bullish potential well-limited.
The USD/JPY pair trades around 103.90, consolidating weekly losses. The dollar is getting some attention early in the European session as concerns mount and fears rule. Global stocks are down as investors can’t cheer vaccine news. The second wave of the pandemic continues to worsen in the northern hemisphere, and more restrictions are being planned or announced in the US and Europe. Speculative interest is pricing in a steeper economic downturn in Q4.
The Japanese macroeconomic calendar has nothing relevant to offer overnight, although Australian employment data was upbeat. Nevertheless, it fell short of spurring some risk appetite. The US will unveil today Initial Jobless Claims for the week ended November 13, foreseen at 707K, and the November Philadelphia Fed Manufacturing Survey, expected at 22 from 32.3 in the previous month.
USD/JPY short-term technical outlook
The USD/JPY pair has decelerated its decline, but the risk is still skewed to the downside in the near-term. The 4-hour chart shows that it is developing well below all of its moving averages, with the 20 SMA still heading south below the larger ones. Technical indicators are modestly recovering but holding near weekly lows and lacking directional momentum. The risk of a bearish extension could decrease on a recovery above 104.00, but the pair will remain far from bullish.
Support levels: 103.50 103.15 102.80
Resistance levels: 104.00 104.30 104.75
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.