USD/JPY Current price: 110.40

  • Global economic slowdown fears plus rising equities sent USD/JPY to fresh yearly highs.
  • US Treasury yields posted a modest daily advance but subdued.

The USD/JPY pair trades at fresh 2019 highs in the 110.40 price zone, underpinned by the positive tone of equities and a modest uptick in US government bond yields in the American afternoon, but mostly up due to broad dollar's strength driving the pair, amid mounting fears of slowing economic growth in other major economies, including the UK, the EU, and Australia, according to forecasts released last week. Meanwhile, the US and China are set to resume trade talks this week,  while US top lawmakers are set to resume discussions to avoid another shutdown. Both factors can play against the greenback with negative outcomes, but don't seem a concern right now.

The pair reached the 110.45 price zone, a strong static resistance without retreating much after the first test of the area, a sign that bulls are in control of the pair. The 4hours chart shows that the RSI entered overbought territory, rather a result of the previous range trading than of a strong upward momentum, as the pair is measly 30 pips above its previous monthly high. Still, the pair is also above its 100 and 200 SMA which lack directional strength above a major Fibonacci support at 109.05, all of which maintains the risk skewed to the upside, with room for an extension up to the 111.40 price zone.

Support levels: 110.15 109.85 109.40      

Resistance levels: 110.60 111.00 111.45

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 struggles despite US-China trade truce, focus on German inflation

EUR/USD is on the defensive, but holding above the 200-day moving average. Reports of US-China trade truce are boding well for the US Dollar. An above-forecast German CPI could yield a rally in EUR/USD. 

EUR/USD News

GBP/USD: Less attention to UK politics as all eyes on trade headlines

UK political hustings, statements from MPs couldn’t lure the GBP/USD traders. Markets await fresh headlines from the G20 meeting for fresh impulse. US data can offer intermediate trade opportunities.

GBP/USD News

USD/JPY extends the break above 108.00 on US-China trade truce news

The latest reports of a US-China trade truce triggered a renewed risk-on wave and knocked-off the Yen, with the USD/JPY pair now extending its break above the 108 handle while the focus shifts towards the US Q1 final GDP data for fresh impetus.  

USD/JPY News

US Q1 GDP Final Revision Preview: Look ahead not behind

The second revision and third version of first quarter annualized GDP is expected to be unchanged at 3.1%. The initial release was 3.2%. The unexpected strength of the US economy in the first quarter came after a successful 2018.

Read more

Gold: Off 6-year highs, but breakout on monthly chart a done deal

With the 14-day relative strength index (RSI) still holding well above 70.00, the yellow metal may drop below $1,400 in the next 24-36 hours. Also, reports of temporary US-China trade truce could weigh over the safe haven metal.

Gold News

Majors

Cryptocurrencies

Signatures