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. 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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD turns below 1.10 as market mood eases

EUR/USD has dropped below 1.10 as the market mood improves. Earlier, it hit three-week highs as the stock market crash and rush into bonds is raising the chances of the US Fed cutting rates. Further coronavirus headlines are awaited.

EUR/USD News

GBP/USD hits new 2020 low amid Brexit rhetoric, coronavirus headlines

GBP/USD has dipped below 1.2850, hitting a new 2020 low as concerns about a no-trade-deal Brexit are weighing on the pound. Coronavirus-linked USD weakness is minimal in this pair.

GBP/USD News

XAU/USD tumbles near two-week’s lows, sub-$1600/oz

Gold has been dropping sharply this Friday while reaching the 200 SMA on the four-hour chart. XAU/USD bulls gave up as sellers took the market down sharply. The bears seem to be in charge and more down could potentially be expected. 

Gold News

WTI remains under pressure around $45.00

Nothing new around crude oil prices, with rising concerns on the Chinese COVID-19 and its potential impact on the economy and the demand for the commodity keeping traders’ sentiment well depressed.

Oil News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors

Cryptocurrencies

Signatures