USD/JPY Current price: 108.25

  • Nikkei Manufacturing PMI expected to have bounced just modestly in July.
  • US Treasury yields recovered alongside Wall Street, underpinning the pair.
  • Broad-based dollar’s strength pushed the USD/JPY pair up for a third consecutive day.

The USD/JPY pair is finishing a third consecutive day with gains, although the advance has been painful, to say the least, as it stands barely 50 pips above Friday’s close. The advance was backed by resurgent demand for the greenback, alongside a recovery in US government bond yields. The yield on the benchmark 10-year Treasury note recovered to settle at 2.06%, after touching 2.02% Monday. Japan will open its macroeconomic week early Wednesday by releasing the final versions of the Leading Economic Index and the Coincident Index, both for May, alongside the preliminary estimate of the Nikkei Manufacturing PMI for July, foreseen at 49.7 vs. the previous 49.3.

USD/JPY short-term technical outlook

The USD/JPY pair has retreated from a daily high of 108.28 to close the day just below this last,  trapped in the last trading session of the day between Fibonacci levels, with the 61.8% retracement of the July’s decline capping advances. In the 4 hours chart, the price is holding above the 100 and 200 SMA, which lack directional strength, while the 20 SMA advances below the current level, now around the 38.2% retracement of the same slide at 107.90. Technical indicators have eased just modestly within positive levels, the Momentum now lacking directional strength yet the RSI indicator recovering, now at fresh weekly highs in the 62 level. The pair has a relevant high just above the mentioned Fibonacci level and would need to advance beyond 108.40 to have chances of extending its gains.

Support levels: 108.00 107.50 107.20

Resistance levels: 108.40 108.85 109.20

View Live Chart for the USD/JPY

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: Bulls struggle to keep the pair above 1.11 ahead of German PMI

EUR/USD is on the defensive ahead of the release of all the all-important flash German and Eurozone Purchasing Managers' Index (PMI) readings for the month of August. A flag breakdown on the 4-hour chart could be seen if Germany's PMI prints below estimates.

EUR/USD News

GBP/USD: Resilient ahead of Johnson-Macron meet

GBP/USD remains modestly flat after reversing from 21-DMA. Upbeat Brexit signals from Germany, the latest negative headlines from France highlights Johnson-Macron meet.

GBP/USD News

USD/JPY: Weaker below 106.50, focus on T-yields ahead of Powell

USD/JPY trades weaker below the 106.50 level, tracking the negative S&P 500 futures and a cautious sentiment on the Asian equities, as attention shifts from the FOMC minutes to the Fed's Powell speech for fresh direction. 

USD/JPY News

USD/CNH: Rallies, confirms falling channel breakout

Another wave of CNH selling could soon hit the market as the pair technical charts are reporting a bullish breakout. For instance, the pair has jumped 0.22% to levels above 7.08 today, confirming an upside break of the falling channel on the 4H chart.

Read more

Gold: Trapped in a symmetrical triangle

Gold is trapped in a narrowing price or a symmetrical triangle pattern, according to the 4-hour chart. The yellow metal rose to a six-year high of $1,353 per Oz on Aug. 13 and has charted lower highs and higher lows ever since.

Gold News

Majors

Cryptocurrencies

Signatures