|

USD/JPY analysis: little room for gains with yields subdued

USD/JPY Current price: 111.33

The USD/JPY pair ended the week unchanged at 111.33, contained by selling interest aligned around 112.00. The JPY advanced on Friday, supported by easing US Treasury yields and better-than-expected inflation in Japan, as data showed that core inflation rose in April by 0.3% when compared to a year earlier, a two-year high, on the back of rising energy costs. Far from the 2% BOJ's target, the news at least is enough to suggest that the Bank is no longer in the extending easing path. The technical picture is bearish, despite the pair trading within a 100 pips' weekly range, given that in the daily chart, it settled below its 100 and 200 DMAs, while technical indicators head lower within negative territory, although with the RSI still above its monthly low. In the 4 hours chart, the price is also developing below its moving averages that anyway lack directional strength, whilst technical indicators have partially recovered within negative territory before losing directional strength, also indicating the absence of buying interest. The pair bottomed this week at 110.23, and a steeper decline could be expected on a break below it.

Support levels: 111.10 110.60 110.25

Resistance levels: 111.65 112.00 112.45

View Live Chart for the USD/JPY

Author

Valeria Bednarik

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

More from Valeria Bednarik
Share:

Editor's Picks

EUR/USD clings to strong gains above 1.1850 on USD weakness

EUR/USD preserves its bullish momentum to start the week and trades above 1.1850. The US Dollar struggles to find demand ahead of Wednesday's critical January employment report and helps the pair continue to push higher. 

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold holds steady above $5,000

Gold builds on the gains it posted to end the previous week and holds steady above $5,000 on Monday. Data released over the weekend showed that the People's Bank of China extended its Gold buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure 

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.