USD/JPY Current price: 105.72

  • China steepens the negative sentiment after accusing the US of violating the consensus.
  • US Retail Sales could give the greenback a short-lived boost, sentiment to overshadow it all.
  • USD/JPY to accelerate its decline on a break below 105.50, the immediate support.

The USD/JPY pair is stable just below the 106.00 figure, although the pair peaked at 106.77, a short-lived spike at the beginning of the European session that can be attributed to thin volumes due to several local holidays.

The Dow Jones Industrial Average lost roughly 800 points Wednesday, the largest one-day drop this year, amid fears of a US recession, with the negative sentiment spreading into Asia and now Europe, playing in favor of the Japanese yen. The negative mood steepened after China stated that the latest US announcement of tariffs, included the delay to December, violates the consensus reached in Osaka.

Japanese data surprised to the upside, although resulted far from encouraging. According to the official announcement, Industrial Production declined by 3.3% MoM in June and by 3.8% YoY, while Capacity Utilization declined by 2.6%, this last, worse than the 0.2% advance expected.

The US will release today July Retail Sales seen up by 0.3% from 0.4% in June. The core reading, Retail Sales Control Group, is seen up by 0.3% vs. the previous 0.7%. The country will also release the usual weekly unemployment figures and some minor regional indexes that have fewer chances of affecting the price.

 USD/JPY  short-term technical outlook

The pair is gaining short-term bearish traction at the time being, trading near its daily low. In the 4 hours chart, the pair is breaking below its 20 SMA, while technical indicators turned sharply lower, the Momentum still holding above its mid-line, but the RSI already at 45, indicating that further declines are likely. Intraday highs and lows in the 105.50 region, providing an immediate support, with a break below the level opening doors for a steeper decline toward fresh lows below the 105.00 figure.

Support levels: 105.50 105.10 104.85

Resistance levels: 106.05 106.40 106.80

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 trades around 1.1100 amid the Italian crisis, ahead of Fed minutes

EUR/USD is trading around 1.1100, in familiar ranges. Italian President Mattarella will explore if a new government can be formed after PM Conte resigned. The FOMC Minutes are eyed later in the day.

EUR/USD News

GBP/USD leans lower ahead of the Johnson-Merkel meeting

GBP/USD is trading below 1.2150, losing some ground. UK PM Johnson will meet German Chancellor Merkel in Berlin after the latter called for finding practical solutions on the Irish backstop.

GBP/USD News

USD/JPY: Bulls re-take 106.50 amid higher S&P futures, Treasury yields

Following a temporary reversal seen on Tuesday, the USD/JPY pair resumes the bullish momentum in Wednesday's Asian trading and regains the 106.50 level, tracking the gains in the US Treasury yields and S&P 500 futures. 

USD/JPY News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Critical technical levels cryptos need to overcome after the summer slide

Late August is vacation time in the northern hemisphere – and cryptocurrency bulls may be at the beach as well. Tuesday's slide in prices lacks clear triggers and perhaps shows some fatigue or profit-taking.

Read more

Gold slips below $1500 mark amid improving risk sentiment

Gold edged lower through the early European session on Wednesday and is currently placed at the lower end of its weekly trading range, just below the key $1500 psychological mark.

Gold News

Majors

Cryptocurrencies

Signatures