USD/JPY Forecast: Increasingly bearish after falling toward its 100 DMA
|USD/JPY Current Price: 108.55
- The Japanese macroeconomic calendar will remain empty this Friday.
- US Treasury yields edged sharply lower, dragging the pair alongside.
- USD/JPY pierced December low, fell to a fresh 2-month low.
The USD/JPY pair fell to 108.20, its lowest in almost two months, weighed by falling US Treasury yields during US trading hours. Despite Wall Street continued rallying, bonds appreciated driving yields sharply lower in the first trading day of the year. The yield on the benchmark 10-year note fell to 1.85%, after peaking at 1.95% at the beginning of the day. Japan will return to business after a long holiday, but there are no macroeconomic data scheduled for release.
USD/JPY short-term technical outlook
The USD/JPY pair has bounced from the mentioned low, ending the day at around 108.50. It has neared a mild-bullish 100 DMA for the first in almost three-months and fell for a fourth consecutive day, which reflects the increasingly bearish potential. In the shorter-term, and according to the 4-hour chart, the risk is also skewed to the downside, as the pair is developing below a firmly bearish 20 SMA, which already crossed below the larger ones, as technical indicators resumed their declines within negative levels, after correcting extreme oversold conditions.
Support levels: 108.40 108.10 107.70
Resistance levels 108.90 109.30 109.70
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.