USD/JPY Current price: 106.44

  • The positive tone of equities and a bounce in government bond yields keeping the pair afloat.
  • FOMC Meeting Minutes expected to have a limited impact ahead of Jackson Hole.
  • USD/JPY to resume its decline on a break below 106.05, a Fibonacci support.

The USD/JPY pair is trading lifeless in a 50 pips’ range just below a critical Fibonacci resistance ever since the week started, as, despite some back and forth in the market’s sentiment, safe-haven assets continue to be demanded in an uncertain environment. This Wednesday, equities are performing better in Europe, pushing US futures up ahead of the opening. Government bond yields ticked higher, although the yield for the benchmark 10-year Treasury note is at 1.58% up from a monthly low of 1.47% but well below the 2.06% it hit at the beginning of August.

Japan didn’t release relevant data this Wednesday, which exacerbated the quietness around the pair. The market is now waiting for the release of the FOMC Meeting’s Minutes. The statement is usually scrutinized in search of clues about the future of the monetary policy. This time, the document may have a limited effect on the dollar, as the meeting took place before the latest escalation of the trade war, which is among US policymakers major concerns, and also below some encouraging data released last week, included upbeat Retail Sales. Furthermore, Fed’s head, Jerome Powell is scheduled to speak this Friday within the Jackson Hole Symposium and will probably provide more updated cues.

USD/JPY  short-term technical outlook

The USD/JPY pair is technically neutral, according to the 4 hours chart, as it’s stuck between the 20 and 100 SMA, with the largest maintaining its downward slope just above the current level. Technical indicators hover just above their midlines, without directional strength. The 106.65 price zone, where it has the 38.2% retracement of its latest daily decline, has capped advances since the week started, quite a relevant resistance. The 23.6% retracement of the same slide comes at 106.05, providing support.

Support levels: 106.05 105.60 105.25

Resistance levels: 106.65 106.95 107.20

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. 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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD hovers around the 34-months lows amid growth concerns

EUR/USD is trading below 1.0850, just above the lowest since April 2017. Concerns about eurozone growth are weighing on the common currency. Markets are watching coronavirus developments. 


GBP/USD shrugs off Brexit concerns and holds its ground

GBP/USD is trading around 1.3050, little-changed. The French foreign minister warned of acrimonious Brexit talks as the UK's chief negotiator is laying down a tough stance. 


Forex Today: Coronavirus fears persist, Japanese economy squeezes, cryptos climb down

China has announced it will stimulate the economy in the face of the coronavirus outbreak, including lower corporate taxes and increased spending. While most factories have returned to work, Beijing has tightened restrictions on movements in the Hubei province.

Read more

Gold slips below $1580 level amid improving risk sentiment

Gold retreats from two-week tops amid receding demand for traditional safe-haven assets. The precious metal failed to capitalize on its recent positive move to near two-week tops and edged lower during the early European session on Monday amid fading safe-haven demand.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors