USD/JPY analysis: Slow recovery brings doubts

USD/JPY Current price: 109.19

The yen ended the week mostly lower in the market, with no significant variations. Modest weekly gains in equity markets, a small rise in US yields and no new geopolitical worries lowered the demand for the yen. The fundamental perspective still shows concerns and despite a rally in Wall Street on Thursday, the short-term trend in equity prices remains to the downside. Next week, US data could have a more significant impact, also US President Trump could make some announcements.

The USD/JPY pair posted minor gains and the bullish correction could continue. Still, the dominant trend favors the yen. On a wider perspective that would change with a break above 113.50, that level, for the moment is out of reach. A correction on top of 110.10 could give more strength to the US dollar. To the downside, the pair has strong supports around 107.70: a break of that area could trigger an acceleration to the downside, boosting the yen across the board.

USD/JPY WEEKLY

Support levels: 108.70 108.30 108.10

Resistance levels: 109.50 110.10 110.40

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 securities. 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 Forex 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.