USD/JPY Current price: 106.47
- USD/JPY comfortable above 106.00 and short-term bullish.
- US calendar has little to offer today, attention centered on Fed's meeting.
The USD/JPY pair surged to a daily high of 106.60 and holds nearby mid-European session, as bond yields and equities trade in positive ground this Tuesday. The Japanese yen swung higher following comments from new BOJ's deputy governor Amamiya, who said that Japan is no longer in deflation, adding that he doesn't rule out adjusting rates before inflation reaches the 2.0% goal. Nevertheless, he later said that the BOJ decides in each meeting what's best on the yield-curve, cooling down demand for the JPY. Overnight, the Japanese Leading Economic Index for January was revised lower to 105.6, while the final Coincident Index resulted at 114.9, also below previous estimates.
The short-term picture is positive for the pair, as in the 4 hours chart, it has managed to settle above its 100 SMA that anyway maintains a bearish slope, while technical indicators advance within positive territory. The upward momentum eased amid the absence of fresh catalysts, but indicators hold near their daily highs. In the same chart, the 200 SMA heads lower around 107.10, providing ia strong resistance in the case of an upward acceleration through the mentioned high. Selling interest around this last should cap advances, particularly ahead of Fed's monetary policy decision on Wednesday. Below 106.20, on the other hand, the risk turns toward the downside.
Support levels: 106.20 105.90 105.55
Resistance levels: 106.60 107.10 107.45
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: Slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.