USD/JPY Price Analysis: Failure at 115.70 opens the door for a leg-down before resuming uptrend
|- The USD/JPY slides 0.15% as investors prepare for the weekend.
- The greenback finished the week above 97.00 for the first time since June 2020.
- USD/JPY is upward biased, but the pair could print a leg-down before resuming the uptrend.
As Wall Street closes, the USD/JPY slides ahead of the weekend, spurred by the US 10-year Treasury yield fall, which drops eight basis points, from 1.85% to 1.777%. At the time of writing, the USD/JPY is trading at 115.22.
The New York session witnessed a slight improvement in the market mood as US stocks rebounded near the close of Wall Street, finishing with gains.
The USD has been on the defensive in the FX market, undermined by falling US T-bond yields versus the Japanese yen, failing to break above an upslope trendline, drawn from October 2021 lows to December ones passing around the 115.40-60 range.
On Friday, during the overnight session for North American traders, the USD/JPY peaked at around 115.68, above the abovementioned trendline. However, as American traders got to their desks, the pair fell 40-pips to current levels.
USD/JPY Price Forecast: Technical outlook
The USD/JPY is upward biased, as depicted by the daily chart. Failure to break above 115.70 might open the door for a leg-down before resuming the uptrend. However, as long as the retracement remains above the 50-day moving average (DMA) at 114.34, it would keep the uptrend intact.
The USD/JPY to the upside, the first resistance would be January 4, YTD high at 116.35. A breach of the latter would expose a downslope trendline drawn since August 1998 swing highs, a 24-year old trendline around 117.00-20, followed by a test of January 3, 2017, swing high at 118.61.
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.