USD/JPY Current price: 109.15

  • The US and China will remove tariffs if a deal is reached.
  • Risk-related sentiment keeps seesawing with trade-related headlines.
  • USD/JPY near a critical resistance area, large stops suspected above 109.30.

Comments from Chinese Commerce Ministry triggered a U-turn in the market’s sentiment after he said that the country has agreed with the US to cancel existing tariffs in different phases if a trade deal is reached. The USD/JPY pair recovered the 109.00 level, once again trading near the 109.30 critical resistance area, as Wall Street soared to all-time highs in future trading, in detriment of safe-haven assets. Meanwhile, US Treasury yields ticked higher, with that for the 10-year note hitting a fresh over one-month high.

Japan didn’t release relevant data during Asian trading hours, while the upcoming American session will bring minor figures from the US. The country will release weekly unemployment claims, seen at 215K in the week ended November 1, and September Consumer Credit Change.

USD/JPY short-term technical outlook

The USD/JPY pair is trading around 109.15, technically bullish according to the 4-hour chart, as the pair met buyers around the 23.6% retracement of its October rally where it also has its 100 SMA. The 20 SMA maintains its bullish slope below the current level and above the larger ones, while technical indicators resumed their advances after correcting overbought conditions. Large stops should be gathered above the 109.30 level, and if those get triggered, the pair has room to extend its rally toward 110.00, mainly on the back of risk appetite.

Support levels: 108.65 108.20 107.90  

Resistance levels: 109.30 109.60 110.00

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex Analysis

Editors’ Picks

EUR/USD: Bullish breakout faces next challenge at 1.1150

The EUR/USD pair closed the week at around 1.1100, its highest settlement in two months, as poor US data coupled with a relief rally of high-yielding assets ahead of the close. Several European countries will start the week celebrating a holiday.

EUR/USD News

GBP/USD: Post-Brexit relationship taking centre stage

The GBP/USD pair hit 1.2393 on Friday, a two week high, retreating sharply from the level ahead of Trump’s speech to later recover on relief and settle at 1.2345. Cable is technically neutral, although the bullish potential seems limited.

GBP/USD News

Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex Majors

Cryptocurrencies

Signatures