USD/JPY Current price: 110.93
- Japan to release preliminary Q4 GDP during the upcoming Asian session.
- Solid performance of equities and yields underpinning USD/JPY.
The USD/JPY pair trades near the 111.00 level by the end of the US session, backed by the market's positive mood. The greenback benefited from US political-related headlines, indicating that US President Trump will likely avoid another shutdown by approving the latest deal sealed in the Congress and that he could extend the truce with China to extend talks beyond March 1. Equities were up worldwide, while US Treasury yields also gained ground, both bullish factors for the pair. The benchmark yield for the 10-year Treasury note peaked at 2.72% to finally settle around 2.70%. Japanese data released at the beginning of the week once again failed to impress, as the Domestic Corporate Goods Price Index fell 0.6% in January vs. the -0.2% expected, while the YoY reading posted a modest 0.6% advance, below the previous 1.5% and the forecasted 1.1%. Japan will release this Thursday preliminary Q4 GDP seen up 0.4% after falling by 0.6% in the previous quarter.
The pair is poised to extend its advance according to technical readings in the 4 hours chart as it kept advancing above its 100 and 200 SMA, with the shortest accelerating north, as technical indicators continue to lack directional strength but at weekly highs. The RSI indicator in fact, consolidates at around 76, with no signs of upward exhaustion. The 111.00 figure is the first resistance en route to 111.41, December 26 high, and where the pair also has its 100 DMA. The level will likely attract some selling interest if it's reached.
Support levels: 110.45 110.10 109.85
Resistance levels: 111.00 111.45 111.80
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.