USD/JPY analysis: upward correction not enough to confirm a bottom

Valeria Bednarik FXStreet

USD/JPY Current price: 113.65

The USD/JPY pair recovered some ground after falling almost vertically for over a week, as risk-averse trading eased. A recovery in worldwide stocks and US yields, also helped the pair, with the US Treasury 10-year note benchmark up to 2.38% from previous 2.33%. There's no relevant data coming from Japan during the upcoming Asian session, anticipating some thin trading around the pair, particularly ahead of the upcoming ECB meeting, and a busy US calendar. From a technical point of view, the short term picture presents a limited upward scope, given that in the 1 hour chart, technical indicators lost their upward strength and are slowly turning south, whilst the price remains well below its moving averages, with the 100 SMA currently reinforcing the static resistance around 114.00. In the 4 hours chart, technical indicators extended their recovery from oversold readings, maintaining their upward slopes within bearish territory, whilst the 100 SMA extended its downward move, converging now with the 200 SMA at 116.00.

Support levels: 113.10 112.65 112.20

Resistance levels: 113.70 114.00 114.45

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold remains stuck between two key averages ahead of the US inflation test

Gold is building on the previous recovery from one-week lows near $4,350 early Thursday, stretching beyond $4,400. Gold buyers now look forward to the US Producer Price Index and Consumer Price Index data due Thursday and Friday, respectively, for a sustained turnaround.

XRP rally cools, XLM heads toward a make-or-break support

Ripple (XRP) and Stellar (XLM) trade under pressure on Thursday after losing over 2% and 3% so far this week. XRP and XLM are both nearing their crucial support zones, which could determine the next directional move. Meanwhile, mixed derivatives and on-chain data suggest upside potential remains limited for both altcoins. CryptoQuant’s summary data shows cautious signs for both altcoins.

Jobs opened the door for the Fed — inflation decides whether it walks through

The latest US jobs report did not end the debate over the Federal Reserve’s (Fed) next move. It may have done something more subtle: it gave policymakers permission to keep their options open. After months of softer labour market signals, August delivered a stronger-than-expected rebound.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.