USD/JPY Current price: 111.22
- Japanese industrial production rose less than expected in November.
- US data could define next short-term move, bearish trend to resume below 111.00.
The USD/JPY pair surged to a fresh weekly high of 111.47 this Thursday, holding on to gains ahead of Wall Street´s opening, A sudden recovery in the USD coupled with some not so encouraging headlines coming from Japan to send the pair higher. News hit the wires that the BOJ cooled down markets by saying that monetary stimulus is needed for now, while Japanese industrial production rose less than estimated in November, up 0.5%, matching October's figure but below the expected 0.6%. Annualized production, however, surged 3.6% against an expected 1.9%.
The US is about to release its December Housing Starts and Building Permits, both expected to show large slides, of 1.7% and 1.0% respectively. Weekly jobless claims, for the week ended January 12th, are expected at 250K from previous 261K, while the Philadelphia manufacturing index for January is expected at 25.0 from the previous 26.2. In the meantime, European equities struggle around their opening levels, while US Treasury yields advance modestly at multi-month highs.
Technically, the daily chart for the USD/JPY pair shows that it's still trading below its 100 and 200 DMAs, this last around 111.75, providing an immediate dynamic resistance. Shorter term, and according to the 4 hours chart, the pair keeps trading below its 100 and 200 SMAs, with the shortest accelerating below the larger one, the Momentum indicator aims to regain the upside above its 100 level, while the RSI heads marginally lower around 53, all of which suggests a limited upward potential at the time being.
Support levels: 111.05 110.60 110.20
Resistance levels: 111.75 112.10 112.50
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.