USD/JPY Current price: 104.42
- Japanese data was generally discouraging, indicating persistent deflation and soft growth.
- Equities trade in the red in Europe, as concerns remain over the coronavirus spread.
- USD/JPY is technically neutral in the short-term, risk skewed to the downside.
Major pairs settled down after Thursday’s events, with USD/JPY consolidating around 104.40. Against other rivals, the greenback is firmly up weekly basis, as concerns rule, due to the spread of COVID-19 in the northern hemisphere. Asian and European shares were unable to follow Wall Street and trade in the red, although off daily lows amid better than expected German data.
Japanese data was generally discouraging, with October Tokyo inflation down 0.3% YoY and the core reading ex-fresh food falling 0.5% in the same period. September Housing Starts fell 9.9%, worse than the 8.6% expected, while Construction Orders were down 10.6%. On a positive note, the unemployment rate remained steady at 3%, while Industrial Production surged 4% monthly basis. The US will publish today October Personal Income and Personal Spending, and the final version of the Michigan Consumer Sentiment Index.
USD/JPY short-term technical outlook
The USD/JPY pair is in the red for a third consecutive week. The 4-hour chart shows that it was unable to retain ground above a bearish 20 SMA, currently below it. The 100 and 200 SMAs maintain their bearish slopes well above the shorter-one, all of them indicating prevalent selling pressure. Technical indicators, in the meantime, hover within neutral levels, without clear directional strength. The pair has bottomed around 104.00 in September, and once again this October, with a break below the region opening doors for a steeper decline.
Support levels: 103.95 103.50 103.20
Resistance levels: 104.45 104.70 105.10
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.
Recommended Content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price holds strength ahead of US core PCE inflation
Gold price holds onto gains near $2,200 in Thursday’s European session. The precious metal exhibits firm footing ahead of the United States core PCE Price Index data for February, which will be published on Friday.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.