USD/JPY Forecast: Bearish ahead of US employment figures

Valeria Bednarik FXStreet

USD/JPY Current price: 108.61

Japanese data missed the market’s expectations, triggering fresh concerns about the economy.
Focus on US employment figures, market players anticipate dismal numbers.
USD/JPY is technically bearish could break below the 108.00 level.

The Japanese yen is marginally higher against its American rival, with the pair trading around 108.60, although the action across the FX board is limited, ahead of the US Nonfarm Payrolls report. The greenback remains among the weakest, despite encouraging comments from US and Chinese representatives, reaffirming that trade talks continue to progress.

Japanese data released overnight missed the market’s expectations, as Overall Household Spending fell by 5.1% in October against the -3.0% expected by the market. The October preliminary Leading Economic Index came in at 91.8, missing the market’s expectations of 92 and below the previous 91.9.

Speculative interest is waiting for US November employment data. The country is expected to have added 180K new jobs, while the unemployment rate is foreseen steady at 3.6%. Wages’ growth is also seen within familiar levels, up by 0.3% MoM and by 3.0% when compared to a year earlier. Later in the day, the US will release the preliminary estimate of the Michigan Consumer Sentiment Index, seen at 96.5 from 96.8 in the previous month.

USD/JPY short-term technical outlook

The USD/JPY pair is technically bearish, according to the 4-hour chart, as it’s below a bearish 20 SMA, which extends its decline below the larger ones. The Momentum indicator heads marginally lower around its mid-line, while the RSI eases within negative levels, at around 39. Additional declines are likely on a break below 108.45 triggered by a dismal US employment report.

Support levels: 108.45 108.10 107.75

Resistance levels: 109.00 109.30 109.60

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.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.