USD/JPY Current Price: 106.62
- Equities bounced, but the USD/JPY pair ignored the recovery.
- US Treasury yields finished the day little changed after FOMC’s Minutes.
- USD/JPY continues consolidating between Fibonacci levels, upside limited by 106.65.
Dull trading prevailed around the USD/JPY pair, still capped by a key Fibonacci resistance at 106.65. A robust comeback in equities failed to boost the pair, as equities’ advance was led by tech-related shares, still cheering the latest US Commerce Department’s decision on Huawei. Treasury yields edged higher at the beginning of the day but ending it little changed, with the yield on the benchmark 10-year note at 1.57% at the end of the day, down from a daily high of 1.61%. The fundamental factors that usually trigger risk-averse movements remain firmly in the background, which means that there is little room for Yen declines.
The Japanese macroeconomic calendar didn’t offer relevant data this Wednesday, although the country will see the release of the August preliminary Nikkei Manufacturing PMI foreseen at 49.8 from 49.4 in the previous month-
USD/JPY short-term technical outlook
The USD/JPY pair maintains the neutral stance, trading below the 38.2% retracement of its latest daily decline at around 106.65. In the 4 hours chart, the pair has spent the day trapped between the 20 and 100 SMA, with the largest maintaining its downward slope around the current level. Technical indicators in the mentioned chart hover just above their midlines, lacking directional strength. The 23.6% retracement of the same slide comes at 106.05, providing a relevant support, as a break below it should trigger a more relevant slide.
Support levels: 106.05 105.60 105.25
Resistance levels: 106.65 106.95 107.20
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.