USD/JPY Current price: 108.01
- Risk appetite dominates the financial world, weighing on safe-haven assets.
- US Retail Sales and the preliminary Michigan Consumer Sentiment Index up next.
- USD/JPY bullish case prevails, 107.45 critical Fibonacci support.
The USD/JPY pair trades marginally lower daily basis at around 108.00, after hitting 108.25 during Asian trading hours. The American currency is under selling pressure, ever since the ECB announced a stimulus package, as the market speculates that somehow, the decision is forcing the US Federal Reserve to make a move next week. On the other hand, the market mood is positive, with equities rallying and government bond yields at two-week highs, usually negative factors for the Japanese yen.
Japan released July Industrial Production, which was up by 1.3% monthly basis and by 0.7% when compared to a year early, in line with the previous readings. Capacity Utilization in the same month rose 1.1%, better than the previous -2.6%.
The US will seal the week with relevant data, as the country will release August Retail Sales, seen up in the month 0.2% after rising 0.7% in the previous month. The core reading, Retail Sales Control Group, is seen up 0.3%. Later in the session, the country will publish the preliminary estimate of the September Michigan Consumer Sentiment Index, foreseen at 90.0 after plunging to 89.8 in August.
USD/JPY short-term technical outlook
The USD/JPY pair maintains its bullish stance according to intraday technical readings, although the momentum is missing. In the 4 hours chart, the pair is above a bullish 20 SMA, while the 100 SMA is crossing above the 200 SMA in the 106.60 region. Technical indicators have eased within positive levels, with the Momentum maintaining its bearish slope, but the RSI flat at around 62. A key support is located at 107.45, the 61.8% retracement of the August decline. The bullish case will remain in place as long as this level contains declines.
Support levels: 107.90 107.45 107.10
Resistance levels: 108.50 108.85 109.30
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 stays below 1.0700 ahead of US data
EUR/USD stays in a consolidation phase slightly below 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold manages to holds above $2,300
Gold struggles to stage a rebound following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% ahead of US data, not allowing XAU/USD to gain traction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.