USD/JPY Forecast: Decline to accelerate once below 103.50
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: 103.94
- Japan’s November Jibun Bank Services PMI was upwardly revised to 47.8.
- US Treasury yields edged lower amid doubts the US Congress will soon reach a stimulus agreement.
- USD/JPY is trading below 104.00 and could extend its decline during the upcoming sessions.
The USD/JPY pair plunged to 103.66, its lowest in almost three weeks, bouncing from such a low during US trading hours. The American currency came under selling pressure as optimism surrounding a stimulus package in the US cooled down after Senate Majority Leader Mitch McConnell rejected the bipartisan $908 billion proposal. US Treasury yields retreated from their weekly highs on such headline, closing the day in the red.
Japan reported this Thursday the November Jibun Bank Services PMI, which was revised to 47.8 from a previous estimate of 47.7. The country’s macroeconomic calendar will be empty this Friday, with the focus shifting to US employment figures.
USD/JPY short-term technical outlook
The USD/JPY pair trades a handful of pips below the 104.00 level, bearish in the near-term. The 4-hour chart shows that the pair is developing below all of its moving averages, with the 20 and the 100 SMA gaining bearish slopes below the 200 SMA. Technical indicators have lost directional strength but stabilized near their daily lows within negative levels. A steeper decline could be expected on a break below 103.50, a strong static support level.
Support levels: 103.50 103.15 102.70
Resistance levels: 104.30 104.70 105.00
View Live Chart for the USD/JPY
USD/JPY Current price: 103.94
- Japan’s November Jibun Bank Services PMI was upwardly revised to 47.8.
- US Treasury yields edged lower amid doubts the US Congress will soon reach a stimulus agreement.
- USD/JPY is trading below 104.00 and could extend its decline during the upcoming sessions.
The USD/JPY pair plunged to 103.66, its lowest in almost three weeks, bouncing from such a low during US trading hours. The American currency came under selling pressure as optimism surrounding a stimulus package in the US cooled down after Senate Majority Leader Mitch McConnell rejected the bipartisan $908 billion proposal. US Treasury yields retreated from their weekly highs on such headline, closing the day in the red.
Japan reported this Thursday the November Jibun Bank Services PMI, which was revised to 47.8 from a previous estimate of 47.7. The country’s macroeconomic calendar will be empty this Friday, with the focus shifting to US employment figures.
USD/JPY short-term technical outlook
The USD/JPY pair trades a handful of pips below the 104.00 level, bearish in the near-term. The 4-hour chart shows that the pair is developing below all of its moving averages, with the 20 and the 100 SMA gaining bearish slopes below the 200 SMA. Technical indicators have lost directional strength but stabilized near their daily lows within negative levels. A steeper decline could be expected on a break below 103.50, a strong static support level.
Support levels: 103.50 103.15 102.70
Resistance levels: 104.30 104.70 105.00
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.