USD/JPY Current price: 114.02
- Japan Tokyo and National inflation seen little changed from previous month.
- US advanced Q3 GDP will likely have a larger effect on the pair this Friday.
The USD/JPY pair recovered ground in the past US session to settle around the 114.00 level, amid broad-based dollar's strength, following a mostly dovish ECB, which helped equities to regain the ground lost on Wednesday. Bond yields, lately the main motor of USD/JPY, recovered in the American afternoon after being under pressure earlier on the day, following ECB's decision to cut its bond purchases in half starting next January. In the US, the 10-year note benchmark is up to 2.45%, barely above the 2.44% from Wednesday. The Japanese calendar has been quite scarce so far this week, but the country will publish today is Tokyo and National inflation figures, hardly a short-term market mover, but a longer-term indication on where the BOJ is headed. Given that CPI is expected little changed from previous readings, and well below the central bank's 2% target, seems unlikely that the pair will post a strong reaction to it, as market players will rather wait for US advanced Q3 GDP before making decisions on the cross. From a technical point of view, the pair is now neutral-to-positive, as technical indicators lost upward strength, but remain within positive territory, while the price is well above its 100 and 200 SMAs, with the shortest presenting limited directional strength.
Support levels: 113.60 113.20 112.75
Resistance levels: 114.05 114.40 114.85
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.