USD/JPY Current price: 109.51

  • Bouncing US Treasury yields and better-than-expected US data lifted the pair.
  • Upward potential limited by FOMC's dovish announcement.

The USD/JPY pair changed course Friday and trimmed its weekly losses, ending it barely up around 109.50. The upward surprise in US Nonfarm Payroll headline gave a boost to worldwide indexes, with Wall Street closing mixed but off its daily low. US Treasury yields also recovered following the strong number, amid decreased demand for safe-haven government bonds. The benchmark yield for the 10-year Treasury note finished the week at 2.68% after briefly piercing 2.62% earlier in the week. The Nikkei Manufacturing PMI for January, resulted at 50.3, surpassing the expected 50.0. There won't be relevant news coming from Japan until Tuesday when the country will see the release of the Markit Services PMI for January.

The pair returned to its comfort zone previous to the FOMC's dovish announcement, above the 109.05 Fibonacci level, the 61.8% retracement of its latest daily slump. In the daily chart, the 100 DMA extends its decline above the 200 DMA, nearing the larger one, both around 111.50, maintaining the longer-term perspective skewed to the downside. Technical indicators in the mentioned chart head marginally higher within neutral levels, falling short of confirming additional gains ahead. In the 4 hours chart, the intraday advance Friday stalled around the 200 SMA, the immediate resistance at 109.60, while technical indicators lost upward strength, the Momentum right below its mid-line and the RSI at 59, in line with the longer term perspective.

Support levels: 109.05 108.65 108.30  

Resistance levels: 109.60 110.00 110.40

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 tumbles below 1.10 amid weak German PMIs

EUR/USD has dropped sharply below 1.10 after German Manufacturing PMI dropped to 41.4 and other figures are disappointed. Fears of a recession are mounting. ECB's Draghi speaks later.

EUR/USD News

GBP/USD trades below 1.25 as markets await a Brexit breakthrough

GBP/USD is trading below 1.25, little changed. PM Johnson has expressed optimism ahead of meetings with EU leaders in New York. The opposition Labour Party's is trying to iron out its position on Brexit. 

GBP/USD News

USD/JPY: Bulls reasurting themselves amid improved trade sentiment

USD/JPY holds firmer starting out the week, as the optimistic sentiment for trade talks remains on track. However, the further upside remains capped by falling Treasury yields-led broad USD weakness.

USD/JPY News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Bakkt to the Future

Today is the day – the release of futures on Bitcoin by ICE – owner among others by the all-powerful NYSE. This initiative, channeled through the trading platform Bakkt, will allow trading futures on Bitcoin with delivery to maturity.

Read more

Gold climbs to over 1-week tops, around $1520 region

Gold edged higher through the early European session on Monday and is currently placed at over one-week tops, around the $1520 region.

Gold News

Forex Majors

Cryptocurrencies

Signatures