USD/JPY Current price: 108.55

  • Risk aversion maintains the yen strong despite increased dollar's demand.
  • US Treasury yields ended the week in the red and not far from multi-year lows.

The USD/JPY pair closed the week with modest gains just below 108.60, a strong static resistance level. The dollar was unable to advance against its Japanese rival amid persistent risk aversion keeping the Yen also on demand. The pair was confined a tight 70 pips range throughout the week. US Treasury yields edged lower weekly basis, settling Friday not far above multi-year lows, while Wall Street ended the day in the red, adding pressure on the pair. Japanese Industrial Production rose by 0.6% MoM and declined by 1.1% YoY in April, reaffirming the weakness of the local economy. The country won't release relevant data at the beginning of the week. There's a good chance that the pair will remain ranging until next Wednesday when the US Federal Reserve will unveil its latest monetary policy decision.

From a technical point of view, the pair has made little progress these last few days, contained for a second consecutive week by the 38.2% retracement of the latest daily slide measured between 109.92 and 107.81, at 108.60. In the daily chart, the 20 SMA keeps heading south below the larger ones, currently at 108.95, while technical indicators remain within negative levels, lacking directional strength. In the 4 hours chart, the price settled a few pips above a directionless 20 SMA but remains below the larger ones which retain their bearish strength. Technical indicators in this last time frame lost strength upward after entering positive territory, the Momentum already heading marginally lower and the RSI flat at 54. Overall, the risk remains skewed to the downside, at least as long as the pair remains below the 109.00 figure.

Support levels: 108.30 108.05 107.85

Resistance levels: 108.60 109.00 109.40

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 remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.


GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.


USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.


Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News