USD/JPY Current price: 104.71

  • US stimulus talks to continue this Thursday as parts move closer to a deal.
  • US Initial Jobless Claims foreseen at 860K for the week ended October 16.
  • USD/JPY corrective advance stalled well below 105.00, the risk is skewed to the downside.

The USD/JPY pair is recovering some ground after printing a fresh October low of 104.33 on Wednesday, trading in the 104.70 price zone. The dollar reached oversold conditions against multiple rivals as investors struggle to make something out of US stimulus talks. The White House and Democrats appear to be edging towards an agreement, although hard-line Republicans oppose to a large stimulus bill. Meanwhile, the election date approaches and talks have been once again extended to continue this Thursday.

The macroeconomic calendar had little to offer overnight, as Japan only published minor figures related to foreign investment. The American session will bring the US Initial Jobless Claims for the week ended October 16, foreseen at 860K from 898K. The country will also release September Existing Home Sales, seen increasing 5% when compared to August.

USD/JPY short-term technical outlook

From a technical point of view, the latest advance in USD/JPY seems corrective. The 4-hour chart shows that the pair continues developing below all of its moving averages, and with the 20 SMA still heading south below the larger ones. Technical indicators, in the meantime, have barely corrected oversold conditions, and hold well into the red, without directional strength. A critical mid-term support level is 104.00 with a steeper decline expected once below the level.

Support levels: 104.65 104.30 103.95

Resistance levels: 105.00 105.40 105.80

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 Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex Majors