USD/JPY Current price: 111.47

  • Poor Japanese data and broad dollar's weakness keeping the pair directionless.
  • US Treasury yields fell to fresh yearly lows on mounting concerns about slowing economic growth.

The USD/JPY pair closed the week with modest gains around 111.45, despite broad dollar's weakness, as the Japanese currency had its woes to deal with. Data released these last few days fueled concerns about local economic growth, with decreasing industrial activity reported. Furthermore, the Bank of Japan had a monetary policy meeting on Friday, and while there were no fresh growth and inflation forecasts, policymakers downgraded the assessment of the Japanese economy, recognizing that the slump in exports and production was a result of slowing global growth. Meanwhile, US Treasury yields collapsed Friday, with the yield for the benchmark 10-year note falling to a fresh yearly low of 2.58%, to later close the week at 2.59%. Yields decline was attributed to the weak US and Chinese data released by the end of the week. Japan will start the week publishing February trade data, with exports foreseen down by 0.9% and import also seen declining by 5.8%.

The pair has shown little signs of life the last three weeks, consolidating near the yearly high of 112.13 since early this month. The daily chart shows that the price converges with the 100 and 200 DMA, these last directionless, reflecting the ongoing consolidative phase, while technical indicators offer different directional slopes within positive ground, falling short of confirming an upcoming directional move. Shorter term, and according to the 4 hours chart, the pair continues developing above bullish moving averages, with the 100 SMA currently around 111.30. Technical indicators in the mentioned chart turned south, maintaining their downward slopes, and with the RSI currently at 48, suggesting the pair could extend its decline toward 110.75, March 8 low.

Support levels: 111.30 111.00 110.75   

Resistance levels: 111.80 112.15 112.45

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.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD trims Pound-related gains, back to 1.1150/60 price zone

The EUR/USD pair got a nice short-lived boost from Brexit optimism, although it quickly trimmed gains, as PM May failed to convince the markets. Failure near 1.1200 left doors opened for a retest of the yearly low at 1.1110.

EUR/USD News

GBP/USD nears 1.2700 as Brexit optimism fades

The GBP/USD pair keeps easing from daily highs and approaches the 1.2700 figure, down from 1.2814 as UK opposition wasn't convinced by PM May 'new' Brexit deal proposal.

GBP/USD News

USD/JPY stalls bounce near 110.60 post-mixed Japanese data

The tepid bounce in the USD/JPY pair appears to stall near 110.60 region following the releases of mixed Japanese trade and machinery orders data. However, the risk remains to the upside amid fresh US-China trade optimism and ahead of the key FOMC minutes. 

USD/JPY News

FOMC Minutes Preview: Inflation, inflation, where's the Fed's inflation?

The better than anticipated US first quarter GDP of 3.2% received its due in the May FOMC statement where “economic activity rose at a solid rate” in contrast to the March note where “activity has slowed from its solid rate in the fourth quarter.”

Read more

Gold struggles pull away from May lows, continues to trade near $1270

The XAU/USD pair closed the first day of the week virtually flat below the $1280 mark and came under a renewed pressure on Tuesday as the upbeat market sentiment didn't allow the precious metal to find demand as a safe-haven

Gold News

Majors

Cryptocurrencies

Signatures