USD/JPY Current Price: 107.55

  • Risk aversion gave the Japanese Yen a lift at the end of the week.
  • Japan’s National inflation steady at lows in August.
  • USD/JPY barely holding above a critical Fibonacci support at 107.45.

Fresh risk-off flows resulted in the USD/JPY pair trimming weekly gains on Friday, ending the week at 107.55. The pair retreated from a second consecutive day amid news suggesting renewed tensions between the US and China triggering demand for safe-haven assets. Chinese agricultural officers decided to suspend a visit to US farming states, while US President Trump said that he won’t be happy with less than a “complete deal.” Wall Street turned red with the news, while demand for government debt sent yields to fresh weekly lows. Meanwhile, Japan released August National Inflation on Friday, with the headline CPI resulting at 0.3%, worse than the previous 0.5%. The core reading ex-fresh food resulted at 0.5% better than the 0.4% expected but below the previous 0.6%. The country will celebrate the Autumnal Equinox Day this Monday, with local markets therefore closed.

USD/JPY short-term technical outlook

The USD/JPY pair has settled a handful of pips above a critical Fibonacci support at 107.45, the 61.8% retracement of its August decline. The pair has been developing above the level for two consecutive weeks, with approaches to it attracting buying interest. That said, a break below the level will likely imply further slides ahead. In the daily chart, the pair is now below a bearish 100 DMA but still holding above a bullish 20 SMA, while technical indicators continued retreating from overbought readings, maintaining their downward slopes but above their midlines. In the 4 hours chart, however, the bearish potential is stronger, as technical indicators head firmly south well into negative ground, while the 20 SMA began turning lower above the current level.

Support levels: 107.45 107.10 106.80  

Resistance levels: 107.80 108.15 108.40  

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 at three-week highs on contagious optimism

EUR/USD is extending its gains above 1.1050 as the US and China are getting closer to a partial trade deal. Brexit optimism is also helping. US Consumer Sentiment beat expectations with 96 points.


GBP/USD's rally stalls in the open as weekend headlines highlight Brexit deadlock

GBP/USD is a touch softer in the open on Monday, starting off the week in the consolidation of Friday's upside extension to the highest levels since mid-summer. US and China trade talks have gained some traction in a phase 1 deal.


USD/JPY: holding on to gains amid risk-on

The USD/JPY pair jumped to 108.62, its highest since late July, as news that the US and China are progressing toward a trade deal prompted speculative interest away from safe-haven assets. The pair is technically bullish.


China officially invited Lighthizer, Mnuchin and their teams for additional trade talks in China

According to Cristina Alesci, business and politics correspondent for CNN, China has officially invited the United States (US) Trade Representative Lighthizer and Treasury Secretary Mnuchin and their teams for additional trade talks in China ahead of next month's APEC summit in Santiago.

Read more

Gold slumps below $1,480 as risk appetite continues to dominate the market

The bearish pressure surrounding the XAU/USD pair on Friday intensified in the last hour as markets continue to price a possible trade deal between the United States (US) and China.

Gold News

Forex Majors