USD/JPY Current price: 111.71

  • BOJ expected to keep monetary policy unchanged, focus on Kuroda's words.
  • USD still out of the market's favor, advancing only on risk-averse environments.

The USD/JPY pair reached a weekly high of 111.82, finishing the day not far below the level, as news that the Japanese government is considering a downgrade to its assessment of the economy in the monthly report for March hit the yen. Such a downgrade is said to be correlated to falling exports and factory output due to slowing demand from China. Chinese data released at the beginning of the day surprised to the downside, as well as US data released later in the day, leading to a poor performance in worldwide indexes. US Treasury yields, however, bounced modestly from their lows. Wall Street remained afloat, as mid-US afternoon, news made the rounds indicating that China has suggested to combine a state visit of President Xi Jinping to the US with the announcement of a possible trade deal. The Bank of Japan is having its monetary policy meeting this Friday, largely anticipated to remain on hold. Kuroda's speech will come under scrutiny after the early news regarding a possible downgrade.

The pair holds near its daily highs, and the 4 hours chart shows that the pair spent most of the last session consolidating above its 100 and 200 SMA, both presenting modest upward slopes. In the same chart, technical indicators have stabilized near their highs, in positive ground. The pair has room to extend its gains up to the 112.45 region on a break above 112.13, so far the yearly high.

Support levels: 111.10 110.85 110.50

Resistance levels: 111.80 112.15 112.45

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. 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.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD remains depressed below 1.1850 after the Fed's taper talk

EUR/USD is trading under 1.1850, hit by hawkish comments by the Fed's Clarida and Daly. The bank is nearing tapering its bond-buying scheme, a move that could happen this year. US jobless claims and a speech from the Fed's Waller are eyed.

EUR/USD News

GBP/USD flirts with 1.3900 ahead of the BOE's Super Thursday

GBP/USD is licking its wounds around 1.3900 ahead of the BOE’s Super Thursday rate decision in which it also releases new forecasts. Declining covid cases are supporting sterling while hawkish comments from the Fed's Clarida are boosting the dollar.

GBP/USD News

XAU/USD off highs, steady around $1810 ahead of BOE, US data

Gold price is trading almost unchanged on the day, unable to hold at higher levels, despite the latest pullback in the US dollar across the board. The cautious tone across the European markets fuelled the risk-off flows in the US Treasuries, downing the yields alongside the dollar.

Gold News

75% of Ethereum nodes prepared for London hard fork as ETH price surges above $2,700

Around 75% of Etheruem nodes are prepared for the London hard fork. The highly anticipated upgrade is expected to occur on block 12,965,000 scheduled for August 5, following a slight delay. Ethereum price managed to slice above $2,700 for the first time since early June. 

Read more

Bank of England Preview: Five reasons the doves are set to win Super Thursday

An epic battle between hawks and doves on Super Thursday? That is a dramatic way to view the Bank of England's upcoming rate decision – yet there are good reasons to expect doves to carry the day. That would send sterling down. 

Read more

Majors

Cryptocurrencies

Signatures