USD/JPY Current price: 111.04
- Different economies, included Japan, reported soft Q4 growth.
- US December Retail Sales expected to have risen modestly.
The greenback continues advancing against its major rivals, baked by hopes that the US government would avoid another partial shutdown and would extend trade negotiations with China beyond the deadline set for March 1 if it´s needed, and trouble in the Old Continent. The USD/JPY pair hit 111.12 during Asian trading hours, now consolidating around the 111.00 figure, as the market is in wait-and-see mode, ahead of US December Retail Sales and January PPI figures. Data coming from Europe was mixed, as German growth stalled in the last quarter of 2018, as the preliminary Q4 GDP came in at 0.0%, while for the Union, the estimate was as expected, 0.2% for the same period.
Japan released overnight its preliminary estimates for Q4 GDP, up in the three months to December by 0.3%, worse than the 0.4% expected but better than the previous -0.6%. Economic growth compared to a year earlier resulted at 1.4%, matching previsions.
The pair is nearing a major resistance area, the 111.40 region, where it has December 26 high and in the daily chart, the 100 DMA. In the 4 hours chart, the pair remains well above its moving averages, with the 100 SMA gaining upward traction over 100 pips below the current level. Technical indicators, however, lack upward strength, the Momentum nearing its mid-line and the RSI easing within overbought levels. Modest signs of upward exhaustion yet to be confirmed. The pair could turn south short-term if its decline extends below the daily low of 110.86, although the bearish case will come back to play only if the slide extends below 110.10. Selling interest will likely reject the first test of the 111.45 area.
Support levels: 110.80 110.45 110.10
Resistance levels: 111.15 111.45 111.80
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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.