USD/JPY Current price: 111.34
- BOJ Minutes to be out today, largely anticipated to lack surprises.
- US Federal Reserve's announcement could finally wake up the USD/JPY pair.
The USD/JPY pair settled for a third consecutive day around 111.40, although it posted a lower low and a lower high for a third consecutive day, falling to 111.15 before bouncing some. The dollar was under pressure ever since the week started, as softer-than-expected US data lately anticipates another dovish outcome from the US Federal Reserve this Wednesday. The decline is being limited by also disappointing Japanese data, with the market unable to make up its mind on which of these two currencies is now the weaker. Japan will release the Minutes of its latest monetary policy meeting during the upcoming Asian session, alongside the final versions of the Coincident and the Leading indexes for January. The Minutes has little chances of surprising market's participants, with the focus on how concerned policymakers are about the global economic downturn.
The pair remains stuck to converging 100 and 200 SMA in the daily chart, while technical indicators hold right above their midlines, suggesting that the upward potential is still limited. Shorter term, however, the 4 hours chart shows that the risk of a bearish turn remains high, as the pair is struggling to hold above the 100 SMA which anyway maintains a bullish slope. Furthermore, technical indicators recovered from their intraday lows, but quickly lost upward strength, still developing within negative levels. The risk of a downward extension will increase if the pair loses the 111.00 mark, more likely in the case the US Federal Reserve disappoints more than anticipated.
Support levels: 111.30 111.00 110.75
Resistance levels: 111.80 112.15 112.45
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 gains near 1.0700, awaits key US data
EUR/USD clings to gains near the 1.0700 level in early Europe on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter gross domestic product (GDP) data on Thursday.