USD/JPY Current Price: 108.17

  • Risk appetite kept the Japanese yen under pressure.
  • Japanese data keeps indicating slowing economic growth.
  • USD/JPY above 108.00 for the first time in over a month.

The USD/JPY is finishing Thursday at levels last seen by the end of July, having reached an intraday high of 108.18. The pair jumped during Asian trading hours, following some relief news related to the US-China trade war, as the US President, Donald Trump, had a goodwill gesture with China, announcing he postponed the introduction of higher tariffs on Chinese goods meant for October 1 until October 15. Meanwhile, government bond yields kept rallying post-ECB monetary policy decision, with the benchmark yield on the 10-year Treasury note hitting 1.80%.

Japanese data was mixed, still signaling slowing economic growth. According to the official release, Japan’s Producer Price Index was down by 0.3%MoM in August and declined by 0.9% when compared to a year earlier. Machinery Orders in July declined by less-than-anticipated, coming in at -6.6% YoY, while Tertiary Industry in the same month increased a modest 0.1%.  The country will release July Industrial Production, and Capacity Utilization figures this Friday.

USD/JPY short-term technical outlook

The USD/JPY pair is trading a handful of pips below its daily high ahead of the Asian opening, as risk-aversion dominates the financial sphere. In the 4 hours chart, the pair remains in the bullish path, as despite lacking directional strength, technical indicators hold within overbought levels. In the mentioned chart, the 20 SMA maintains its bullish slope above the larger ones, providing a dynamic support. Furthermore, the pair is developing above the 61.8% retracement of its August decline, now a critical support at 107.45. As long as it holds above it, the pair has room to extend gains up to 109.31, August monthly high.

Support levels: 107.45 107.10 106.80  

Resistance levels: 108.15 108.50 108.85

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD struggling to hold onto 1.10 as USD gains ground

EUR/USD is trading close to 1.10, as the US dollar gradually advances. Two White House advisers expressed contradicting accounts of US-Sino trade talks, causing confusion. Germany refrained from adding fiscal stimulus.

EUR/USD News

GBP/USD trades around 1.25 as EU pours cold water on Brexit hopes

GBP/USD is trading around 1.25, off the two-month highs of 1.2582 as EU officials cast doubts about the seriousness of the new UK proposals on Brexit. 

GBP/USD News

USD/JPY drops to one-week lows on trade war headlines

The USD/JPY fell during the American session following reports that the Montana Farm Bureau said China's delegation has canceled a planned trip to view US agriculture.

USD/JPY News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Ethereum points to the Moon as Bitcoin takes a break

ETH/USD exceeds $220 and is bidding to lead the market. Bitcoin sets a bear trap and recaptures $10,000. XRP stalls between technical levels and fails to consolidate $0.30.

Read more

Gold climbs further beyond $1500 mark, lacks follow-through

Gold edged higher for the second consecutive session on Friday, albeit remained well within a familiar trading range held over the past two weeks or so.

Gold News

Forex Majors

Cryptocurrencies

Signatures