USD/JPY ticks higher on a light trading season and approaches 142.00
|- The Greenback is trading at intra-day highs nearing previous support at the 141.90 area.
- The US Dollar Index is resuming its recovery on thin holiday trade.
- Longer-term, the downtrend from mid-November highs remains intact.
The US Dollar is attempting to extend its rebound from Thursday´s lows, yet with the pair still capped below previous support at 141.90, which leaves the 140.00 level on the bear´s focus.
The Yen has been the worst performer of the G7 currencies this year, but it has managed to trim some losses over the last two months, with the US Dollar crushed by hopes of Fed cuts in 2024.
Beyond that, the Bank of Japan is expected to exit its ultra-loose policy next year although the contradictory messages sent by BoJ officials have frustrated investors and are weighing on a firmer Yen recovery.
Trading is expected to be light on the last working day of the year, with, only the Chicago PMI to offer some distraction. Investors will wait for next week with the minutes of the last Fed meeting, US PMIs and, above all, December´s Nonfarm Payrolls to take directional bets on the USD.
The technical picture remains negative yet with bearish momentum losing steam, as shown by the last three week’s falling wedge. This figure has a bias to break lower although support levels at 140.00 and 139.00, the 261% extension of the mid-November decline are likely to challenge bears
On the upside, resistances are at 141.90 and 142.90.
Technical levels to watch
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.