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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

GBP/USD retreats from new highs amid dollar strength

GBP/USD has fallen off the peak of 1.3719, the highest since 2018, amid fresh dollar strength. Optimism about the UK's vaccine campaign and lower cases boosted sterling earlier. The greenback awaiting Biden's first moves as President. 


EUR/USD falls toward 1.21 ahead of Biden´s inauguration

EUR/USD has been descending toward 1.21. President-elect Biden is inaugurated later in the day and hopes of stimulus are high after Treasury Secretary nominee Yellen's testimony. 


Gold: Bulls recapture 200-DMA ahead of Biden's inauguration

Gold prices are attempting to correct higher above 200-DMA. The metal cheers rising US inflation expectations amid hopes of a massive stimulus package under the incoming Biden administration. 

Gold news

Bank of Canada Rate Decision Preview: No change anticipated in interest rate

The Bank of Canada is widely expected to keep monetary policy and quantitative easing unchanged at its meeting on Wednesday in spite of new COVID-19 provincial lockdowns and a slowing economy.

Read more

US Dollar Index: Upside target remains at 91.00

DXY met buyers in the 90.30 region earlier on Wednesday and now resumes the upside to the 90.50/55 band.

US Dollar Index News

Forex Majors