USD/JPY Current price: 113.17
- A holiday in the US helped the pair to bounce, still at risk of resuming its decline.
- Asian and European equities closed in the red, anticipating a sour mood ahead.
The USD/JPY pair gained upward traction in thin US trading, settling near a daily high of 113.22. It trimmed half of Tuesday's losses, when it fell down to 112.57 amid collapsing Wall Street. This Wednesday, equities did no better, yet tensions in Europe and easing commodity-linked currencies gave some support to the greenback. There was no activity in US indexes or yields to lead the way although the negative close of European indexes at fresh weekly lows, leans the risk to the downside for the upcoming sessions. Japan released the Nikkei Services PMI for November, which came at 52.3, below the previous 52.4, doing little for the yen. The country has nothing relevant to offer this Thursday.
Despite the daily advance the short-term picture for the pair keeps the risk skewed to the downside, as, in the 4 hours chart, the Momentum indicator softens in negative level, while the RSI advanced just marginally, still holding below its mid-line. In the same chart, the price is struggling with directionless moving averages, with the shrinking range between them indicating the absence of a clear trend. The bearish potential will increase on a break below the 112.50/60 region, with further declines expected once below 112.20, the 100 DMA.
Support levels: 112.55 112.30 112.00
Resistance levels: 113.35 113.60 113.85
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 near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.