USD/JPY Current Price: 105.89

  • The Japanese July Jibun Bank Manufacturing PMI is foreseen unchanged at 42.6.
  • US Treasury yields plummeted to record lows at the end of the week.
  • USD/JPY recovered from a multi-month low but can soon resume its slide.

The USD/JPY pair bottomed at 104.18 on Friday, a level that was last seen early March, later recovering to settle at 105.87, having trimmed most of its weekly losses. Mixed US data helped the greenback, as Personal Spending in the country increased by 5.6% in June, while Personal Income in the same month declined by 1.1%, this last missing the market’s expectation. Core PCE inflation, in the meantime, contracted to 0.9% from 1.0% in the previous month. Nevertheless, it was good enough to help Wall Street recover the ground shed in the previous sessions. Treasury yields, however, remained depressed and near record lows. Yields for the 3-year note and the 5-year note hit all-time lows, while that on the 10-year note plunged to 0.52%, a four-month low.

Japanese data released on Friday were generally upbeat, as the unemployment rate of the country improved to 2.8% in June, while Industrial Production in the same month rose 2.7% MoM. July Consumer Confidence improved from 28.4 to 29.5 but missed expectations of 32.7. At the beginning of the new week, the country will publish the final version of the July Jibun Bank Manufacturing PMI, foreseen unchanged at 42.6.

USD/JPY short-term technical outlook

 The USD/JPY pair still has limited bullish potential in its daily chart, as the over 150 pips’ advance was barely enough for technical indicators to correct extreme oversold readings. In the mentioned time-frame, the pair continues to develop below all of its moving averages, with the 20 DMA heading firmly lower below the larger ones at around 106.60. In the shorter-term, and according to the 4-hour chart the pair could extend its advance, as it recovered above its 20 SMA, which is now gaining bullish traction, as technical indicators hold near their recent highs well into positive ground. A bearish 100 SMA provides critical resistance at 106.45.

Support levels: 105.60 105.20 104.70

Resistance levels: 106.05 106.45 106.90

 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 rises above 1.18 as dollar drops with yields

EUR/USD is trading above 1.18, as the dollar declines alongside yields, following a large US debt issuance. Weekly jobless claims and the ongoing fiscal impasse in Washington are eyed.

EUR/USD News

GBP/USD advances towards 1.31 amid dollar weakness

GBP/USD is recovering as the dollar cedes ground. Investors are shrugging off concerns about the downfall in the British economy and concerns about the furlough scheme. 

GBP/USD News

Gold: $1907 is the last straw for the XAU/USD bulls

Gold consolidates the $90 bounce below $1950, having witnessed good two-way volatility on Wednesday. Falling US Treasury yields continue to pressure the US dollar across the board, supporting the yieldless gold.

Gold News

Forex Today: Dollar retreats after auction, gold rising amid fiscal impasse, focus on jobless claims

The US dollar is on the back foot after the large bond auction and as optimism prevails in markets despite the fiscal impasse in Washington. Sino-American tensions and a US-EU are eyed ahead of weekly jobless claims.

Read more

WTI: Bulls attack $43.00 inside short-term rising channel

WTI defies the previous day’s pullback from $43.12 with a bounce off $42.76. The energy benchmark flaunted the biggest gains in a month on Wednesday while keeping a one-week-old ascending trend channel formation.

Oil News

Forex Majors

Cryptocurrencies

Signatures