USD/JPY Current Price: 107.78

  • US Treasury yields extended their advance to its highest since August 10th.
  • Equities rallied on news the HKEX made a $36.6 billion offer for London stock exchange.
  • USD/JPY retaining its bullish short-term stance as long as above 107.45.

The USD/JPY pair advanced to a fresh one-month high of 107.84 underpinned by a continued recovery in government bond yields, but after its early advance, the pair turned comatose, stuck around the current 107.75 level. European equities soared, following news that the Hong Kong stocks exchange (HKEX) made a $36.6 billion offer for London stock exchange, which led to substantial gains in Wall Street. Meanwhile, US Treasury yields surged to their highest in a month, with the benchmark yield on the 10-year note hitting 1.75%.

The macroeconomic calendar remained light as Japan released at the beginning of the day the BSI Large Manufacturing Conditions Index, which resulted in -0.2 in Q3 from the previous -10.4. This Thursday, the country will release the August Producer Price Index and July Machinery Orders.

USD/JPY short-term technical outlook

The USD/JPY pair is consolidating above a major Fibonacci level, the 61.8% retracement of the August decline.  It retains its bullish potential, as, in the 4 hours chart, the pair continues developing above all of its moving averages, and with the 20 SMA extending its bullish slope above the larger ones. Technical indicators in the mentioned chart lack directional strength, but hold on to weekly highs, with the RSI in overbought levels. Further advances are likely once above 108.05,  while bulls are now expected to defend the downside around the mentioned Fibonacci support at 107.45.

Support levels: 107.45 107.10 106.80  

Resistance levels: 107.85 108.05 108.40

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 tension remains elevated ahead of the Fed

EUR/USD is trading above 1.1050, in a narrow range ahead of the all-important Fed decision. Chair Powell is set to cut rates but signal no further stimulus is on the cards.


GBP/USD extends its falls to 1.2450 amid weak UK inflation, Brexit impasse

GBP/USD has dropped to around 1.2450 as UK headline CPI missed with 1.7% in August. Brexit negotiations remain stuck according to Chief EU negotiator Barnier. The Fed decision is eyed.


USD/JPY holds on to recovery gains above 108.00 ahead of Fed

Not only upbeat trade numbers from Japan but upbeat trade/political headlines also help the USD/JPY pair to remain firm around 108.20 prior to Wednesday’s European session. Focus on FOMC decision.


Forex Today: Fed set to trigger high volatility, oil falls, altcoins advance

Tension is mounting ahead of the Federal Reserve decision later today. Economists expect a 25 basis point rate cut amid slowing global growth and investment. 

Read more

Gold seesaws around $1,500 with all eyes on FOMC

With the global traders on a wait and see approach ahead of the key event, Gold offers fewer moves while taking rounds to $1,500 during Wednesday’s Asian session. Also supporting the bulls were positive statistics from the US and the Eurozone.

Gold News

Forex Majors