USD/JPY Current price: 109.91
- Japanese data limits yen's gains but run to safety will likely continue.
- US Treasury yields and Wall Street led the way lower for USD/JPY.
The USD/JPY pair fell to its lowest in over a month, reaching 109.73 amid resurgent demand for safe-haven assets. Dismal European data was the catalyst that triggered the run to safety, lately exacerbated by the behavior of US Treasury yields, as the curve inverted for the first time since 2007, with the yield on the 3-month Treasury bill hitting 2.459% while the yield on the 10-year Treasury note touched 2.437%, triggering alerts about a possible recession coming to the US. Adding fuel to the fire, Wall Street collapsed, with the 3 major indexes posting their largest intraday decline since early January. Japanese data released lately has been far from encouraging, preventing the pair from falling further, and increasing odds of an upcoming bounce. Japan will release the January All Industry Activity Index at the beginning of the week, seen at 0.2% vs. the previous -0.4%.
The USD/JPY pair bearish case is strong, according to the daily chart, as the pair fell roughly 150 pips below its 100 and 200 DMA, after spending pretty much two weeks struggling around them. Technical indicators in the mentioned chart head firmly lower within negative levels and nearing oversold readings with no signs of changing course. In the shorter term, and according to the 4 hours chart, the pair shed over 100 pips after failing to surpass its 200 DMA, currently around 110.90, while the 100 DMA turned lower far above the longer one. The Momentum indicator stalled at oversold levels, while the RSI indicator keeps heading south, currently at 23, both adding to the bearish case.
Support levels: 109.70 109.30 109.00
Resistance levels: 110.25 110.60 110.95
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.
Recommended Content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.