USD/JPY Current Price: 106.37

  • Japanese Trade Balance seen posing a deficit of ¥-200.0B in July.
  • Fears receded on Friday, playing against the safe-haven Japanese Yen.
  • USD/JPY downside now limited by 105.50, bearish below this last.

The USD/JPY pair has recovered some ground these last few days, to close the week at 106.35. Still, it posted a lower low and a lower high when compared to the previous week, as the Japanese Yen benefited from its safe-haven condition on mounting concerns about a US recession. The US yield curve inverted for the first time in over a decade, while the yield for the 30-year Treasury note fell below 2.0%. Wall Street advanced for a second consecutive day, while the yield on the benchmark 10-year Treasury note recovered from 1.47% to settle at 1.56%, underpinning the pair. The recovery came after US President Trump referred to “productive” trade talks with China. That said, the better market sentiment is quite fragile as the fundamentals related to the global economic downturn are still present.

Japan will start the week publishing the July Merchandise Trade Balance, foresee at ¥-200.0B vs. the previous  ¥589.5B. Imports and Exports are both expected to have declined, although to a lesser extent than in the previous month.

USD/JPY short-term technical outlook

The USD/JPY pair settled below its weekly high, this one, at around the 38.2% retracement of the 109.31/105.04 decline. In the daily chart, technical readings keep the risk skewed to the downside, as the pair develops below bearish moving averages, while technical indicators have lost directional strength, currently consolidating well into negative levels. In the 4 hours chart, a bullish 20 SMA has been leading the latest advance, now providing an immediate support at around 106.20. The Momentum indicator advances above its mid-line, but the RSI is directionless at around 56, indicating that the pair could extend its gains in the short-term, although such advance would likely be limited.

Support levels: 106.20 105.90 105.50  

Resistance levels: 106.70 107.10 107.50

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 remains stuck in a narrowing price range after Fed

EUR/USD's struggle for strong directional bias continues after hawkish Federal Reserve (Fed) rate cut. The risks in EUR/USD looks skewed to the downside ahead of Eurozone data and ECB-speak.

EUR/USD News

GBP/USD remains below 100-day SMA on "Super Thursday"

With the mixed Brexit headlines and the US Dollar pullback playing contrasting tunes, the GBP/USD pair remains under 100-day SMA while heading into the London open. All eyes on UK Retail Sales, BOE decision.

GBP/USD News

USD/JPY keeps losses below 108.00 as BOJ disappoints the doves

USD/JPY keeps the losses below 108.00, as the Japanese Yen remains on the front foot in reaction to the Bank of Japan's (BOJ) status-quo that came in as a disappointment for the doves. 

USD/JPY News

Bitcoin price update: BTC/USD dives below Bollinger Band levels as $10,000 is pierced

Bitcoin has lost its cool towards the end of the Asian session on Thursday. After managing to defend $10,000 over the last few days, the granddaddy of cryptos has plunged below several other support areas including $9,900 and $9,800. 

Read more

Gold: Indecisive market, focus on today's close

Gold is currently trading at $1,480 per Oz, representing 0.21% drop on the day. On Wednesday, the yellow metal witnessed two-way business before ending the day with moderate losses at $1,494.

Gold News

Forex Majors

Cryptocurrencies

Signatures