USD/JPY Forecast: Following the behavior of US Treasury yields
Premium|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.
Your coupon code
FXS75
USD/JPY Current price: 106.16
- Japanese macroeconomic data improves modestly but failed to impress.
- US Treasury yields remained depressed throughout the week, limiting USD/JPY range.
- USD/JPY technically neutral could turn bearish on a break below 105.50.
The USD/JPY pair closed the week as it started in the 106.10 price zone, unable to attract speculative interest ever since the month started. On Friday, the pair remained confined to a tight 20 pips’ range, with its behavior tied to that of US Treasury yields. Japanese data failed to impress, as the country published the August PPI, which was up 0.2% in the month, but declined 0.5% when compared to a year earlier. The Q3 BSI Large Manufacturing Conditions Index came in at 0.1, improving from -53.3 and much better than the -44.2 expected.
This Monday, the country will publish July Industrial Production and Capacity Utilization, and the Tertiary Industry Index for the same month, foreseen at 5.2% from 79% in June.
USD/JPY short-term technical outlook
The USD/JPY pair is technically neutral, although, in the longer-term perspective, the risk skews to the downside. The daily chart shows that the price has been stuck around the 20 DMA for over a week already, while below the larger ones, which maintain modest downward slopes. Technical indicators, in the meantime, head nowhere around their midlines. In the 4-hour chart, the technical picture is also neutral, as the pair is just above congesting moving averages, while technical indicators stand around their midlines.
Support levels: 105.90 105.50 105.10
Resistance levels: 106.35 106.70 107.10
View Live Chart for the USD/JPY
USD/JPY Current price: 106.16
- Japanese macroeconomic data improves modestly but failed to impress.
- US Treasury yields remained depressed throughout the week, limiting USD/JPY range.
- USD/JPY technically neutral could turn bearish on a break below 105.50.
The USD/JPY pair closed the week as it started in the 106.10 price zone, unable to attract speculative interest ever since the month started. On Friday, the pair remained confined to a tight 20 pips’ range, with its behavior tied to that of US Treasury yields. Japanese data failed to impress, as the country published the August PPI, which was up 0.2% in the month, but declined 0.5% when compared to a year earlier. The Q3 BSI Large Manufacturing Conditions Index came in at 0.1, improving from -53.3 and much better than the -44.2 expected.
This Monday, the country will publish July Industrial Production and Capacity Utilization, and the Tertiary Industry Index for the same month, foreseen at 5.2% from 79% in June.
USD/JPY short-term technical outlook
The USD/JPY pair is technically neutral, although, in the longer-term perspective, the risk skews to the downside. The daily chart shows that the price has been stuck around the 20 DMA for over a week already, while below the larger ones, which maintain modest downward slopes. Technical indicators, in the meantime, head nowhere around their midlines. In the 4-hour chart, the technical picture is also neutral, as the pair is just above congesting moving averages, while technical indicators stand around their midlines.
Support levels: 105.90 105.50 105.10
Resistance levels: 106.35 106.70 107.10
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.