USD/JPY Current price: 110.84
- US Treasury yields trimmed early losses, helping the USD/JPY hold near 111.00.
- Sour sentiment related to trade-war remains the main market motor.
The USD/JPY pair advanced for a fifth consecutive day, reaching 111.05, its highest since late May, before retreating to spend the day in the 110.70/80 area. Weighing on the Asian currency was the Tankan report, which showed that business confidence in Japan slipped for a second consecutive quarter, down to 21 from the previous 24. The Nikkei manufacturing PMI for June resulted as expected at 53.0, down from the previous 53.1. Despite the sour tone of worldwide equities, US Treasury yields managed to trim early losses and recover up to Friday's closing levels, which alongside with stronger-than-expected US data helped to keep the pair afloat at the end of the day. Technically, the 4 hours chart shows that the pair is holding above its 100 and 200 SMA, with the shortest aiming modestly higher in the 110.20 region. In the mentioned chart, the Momentum indicator eases in positive territory while the RSI holds directionless around 58, leaving a neutral-to-bullish stance in the short-term. A break through the mentioned daily high should lead to a test of 111.39, May monthly high, ahead of the 111.70/80 region, while below 110.55, a bearish extension could be expected for this Tuesday.
Support levels: 110.55 110.15 109.90
Resistance levels: 111.05 111.40 111.75
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. 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
Australian Dollar maintains ground amid subdued US Dollar, US Nonfarm Payrolls awaited
The Australian Dollar rises on hawkish sentiment surrounding the RBA prolonging higher interest rates. Australia’s central bank is expected to maintain its current rate at 4.35% until the end of September. US Nonfarm Payrolls is expected to print a reading of 243K for April, compared to 303K prior.
EUR/USD: Optimism prevailed, hurting US Dollar demand
The EUR/USD pair advanced for a third consecutive week, accumulating a measly 160 pips in that period. The pair trades around 1.0760 ahead of the close after tumultuous headlines failed to trigger a clear directional path.
Gold bears take action on mixed signals from US economy
Gold price fell more than 2% for the second consecutive week, erased a small portion of its losses but finally came under renewed bearish pressure. The near-term technical outlook points to a loss of bullish momentum as the market focus shifts to Fedspeak.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.