USD/JPY analysis: bearish momentum extends US bond auction

Valeria Bednarik FXStreet

USD/JPY Current price: 108.54

Japan National and Tokyo CPI figures up next.
US weakness fuels yen's gains to fresh 4-month highs.

The Japanese yen extended its rally against its American rival to a new 4-month high of 108.52, with the pair having spent most of the US afternoon not far above the level, and heading into the Asian opening, clinging on to its recent losses. Asian and European equities closed in the red, while US data disappointed, adding to the bearish case of the pair, which remains in the red as despite US equities continue marching to record highs, yields are little changed from Wednesday's closing levels, and not far from multi-month highs after a strong auction. Early Friday, Japan will release its Tokyo and National inflation figures, seen little changed from their previous levels. If inflation comes worse than expected, the yen could lose some of its bullish steam. Technical readings in the 4 hours chart, however, support a continued slide ahead, as the price continues moving away from bearish 100 and 200 SMAs, while technical indicators stand in extreme oversold territory, with the RSI heading south at 21. The pair could correct higher on an advance above the 108.80/90 price zone, the immediate resistance, while a steady decline will likely expose 2017 low of 107.31.

Support levels: 108.50 108.10 107.75

Resistance levels: 108.85 109.25 109.60

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD steadies near 1.1650 ahead of US Nonfarm Payrolls

EUR/USD holds ground after five days of losses, trading around 1.1650 during the Asian hours on Friday. Traders remain cautious ahead of the US Nonfarm Payrolls report, which is expected to offer further insight into labor market conditions and the Federal Reserve’s policy outlook. December NFP is forecast to show job gains of 60,000, down from 64,000 in November.

GBP/USD: Further weakness could challenge 1.3400

GBP/USD remains under unabated selling pressure on Thursday, slipping to fresh three-day lows around 1.3415 in response to further improvement in the sentiment surrounding the Greenback ahead of Friday’s key NFP data.

Gold defends $4,450, looks to the crucial US NFP report

Gold struggles to capitalize on the previous day's goodish move up from the vicinity of the $4,400 mark and attracts some sellers while defending $4,450 in the Asian session on Friday. The critical US employment details will offer more cues about the Fed's rate-cut path, which, in turn, will influence the US Dollar price dynamics and provide a fresh impetus to the non-yielding bullion.

Forecasts for Payrolls are all over the place

Yesterday’s data put the kybosh on the idea the Fed needs to cut rates fairly urgently to protect the labor market. The jobs component of the ISM services index was nicely over 50, and that rising JOLTS voluntary quits rate also points to no real heartache in labor.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

XRP slides as institutional and retail demand falters

Ripple is trading down for the third consecutive day on Thursday amid escalating volatility in the cyrptocurrency market. After peaking at $2.41 on Tuesday, its highest print since November 14 amid the early-year rally, XRP has quickly ran into aggressive profit-taking.