USD/JPY Forecast: Heading toward 109.72, December high
|USD/JPY Current Price: 109.35
- US-China reached a deal in principle, according to US President Trump, dollar soars.
- Japan Q4 Tankan report expected to show further easing in manufacturing and non-manufacturing activity.
- USD/JPY bullish int he short term, risk will turn south on a break below 108.90.
The Japanese Yen was the biggest loser this Wednesday, as USD/JPY soared to 109.44, its highest in over a week, as encouraging news related to the US-China trade war spurred risk-appetite. Wall Street rallied to record highs, dragging the pair alongside, after US President Trump tweeted: “Getting VERY close to a BIG DEAL with China. They want it, and so do we!” Treasury yields, in the meantime, jumped to fresh weekly highs, with the yield on the benchmark 10-year Treasury note, hitting 1.90%. News that both economies reached a deal in principle and awaits Trump’s signature further underpinned the pair.
During the upcoming Asian session, Japan will release the Q4 Tankan report. The Large Manufacturing Activity Index is seen at 2 from 5 previously, while the Non-Manufacturing Index is foreseen at 16 from 21.
USD/JPY short-term technical outlook
The USD/JPY pair is trading above 109.30, having met short-term buyers around the 61.8% retracement of its latest decline, which favors an upward extension toward the 109.72 high set earlier this month. In the 4-hour chart, technical indicators are stabilizing near overbought readings, while the price has advanced firmly above all of its moving averages, skewing the risk to the upside.
Support levels: 109.20 108.90 108.40
Resistance levels: 109.70 110.10 110.50
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.