USD/JPY Forecast: Direction depends on yields’ behavior
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 all exclusive analysis, access our analysis and get Gold and signals alerts
Elevate your trading Journey.
UPGRADEUSD/JPY Current price: 108.95
- BOJ’s Governor Kuroda repeated they will sustain “powerful monetary easing.”
- Several US officials will offer speeches during the American afternoon.
- USD/JPY is technically neutral in the near-term, with buyers aligned around 109.00.
The USD/JPY pair trades just below the 109.00 level, recovering from an early low at 108.69 on the back of weaker government bond yields favoring some modest dollar’s demand. Still, major pair trade near Friday closing levels, waiting for some fresh news. Stocks are up, although gains are modest, also reflecting the absence of a new catalyst and a holiday in Europe and Canada.
Bank of Japan Governor Haruhiko Kuroda was on the wires during Asian trading hours but said nothing new. He said that the central bank “will continue to patiently sustain powerful monetary easing to achieve its mandate of price stability,” adding that the near-term focus is to respond to the impact of a pandemic on the economy. Pressure on the economy remains amid emergency curbs.
The US session will bring the April Chicago Fed National Activity, previously at 1.71, and several speeches from US Federal Reserve officials, which may add some spice to financial markets.
USD/JPY short-term technical outlook
From a technical point of view, the USD/JPY pair is neutral in the near-term. The 4-hour chart shows that the pair struggles with the 20 and 200 SMA, both converging directionless. The 100 SMA is flat above the current level. Technical indicators are seesawing around their midlines, lacking directional strength. Sellers are aligned around 109.00, with a clear break above the level still unlikely.
Support levels: 108.60 108.20 107.80
Resistance levels: 109.00 109.30 109.80
View Live Chart for the USD/JPY
USD/JPY Current price: 108.95
- BOJ’s Governor Kuroda repeated they will sustain “powerful monetary easing.”
- Several US officials will offer speeches during the American afternoon.
- USD/JPY is technically neutral in the near-term, with buyers aligned around 109.00.
The USD/JPY pair trades just below the 109.00 level, recovering from an early low at 108.69 on the back of weaker government bond yields favoring some modest dollar’s demand. Still, major pair trade near Friday closing levels, waiting for some fresh news. Stocks are up, although gains are modest, also reflecting the absence of a new catalyst and a holiday in Europe and Canada.
Bank of Japan Governor Haruhiko Kuroda was on the wires during Asian trading hours but said nothing new. He said that the central bank “will continue to patiently sustain powerful monetary easing to achieve its mandate of price stability,” adding that the near-term focus is to respond to the impact of a pandemic on the economy. Pressure on the economy remains amid emergency curbs.
The US session will bring the April Chicago Fed National Activity, previously at 1.71, and several speeches from US Federal Reserve officials, which may add some spice to financial markets.
USD/JPY short-term technical outlook
From a technical point of view, the USD/JPY pair is neutral in the near-term. The 4-hour chart shows that the pair struggles with the 20 and 200 SMA, both converging directionless. The 100 SMA is flat above the current level. Technical indicators are seesawing around their midlines, lacking directional strength. Sellers are aligned around 109.00, with a clear break above the level still unlikely.
Support levels: 108.60 108.20 107.80
Resistance levels: 109.00 109.30 109.80
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.