USD/JPY Current price: 107.79

  • Japan’s Merchandise Trade Balance posted a deficit of  ¥930.4B in April.
  • US Jobless Claims seen at 2.4 million in the week ended May 15.
  • USD/JPY holding on to gains could accelerate its advance once above 108.08.

The greenback is recovering some ground across the board, with USD/JPY trading around 107.80, as the market sentiment deteriorates. Late Wednesday, the WHO reported that there were over 100K coronavirus cases in the last 24 hours, the largest one-day jump, although centred in the Americas. Just in the US, there were over 45K new cases, despite the country is believed to have passed the peak and it’s in the process of reopening its economy.

Meanwhile, tensions between the US and China continue to escalate, amid the first blaming Beijing for the coronavirus pandemic. Stocks trade in the red in Asia and Europe, anticipating a soft start to the day for Wall Street.

Overnight, Japan released the April Merchandise Trade Balance, which came in at ¥-930.4B much worse than anticipated. Exports were down by 21.9% while imports decreased by 7.2%. The preliminary estimate of the Jibun Bank Manufacturing PMI came in at 38.4 in May after printing at 41.9 in April.

The US session will bring Initial Jobless Claims for the week ended May 15, foreseen at 2.4 million, and the preliminary estimates of Markit PMIs for May. Both, Services and Manufacturing output are expected to have bounced, but also to remain well into contraction territory.

USD/JPY short-term technical outlook

The USD/JPY pair has recovered from the 107.30 support area, where it bottomed late Wednesday, providing additional relevance to the support. Bears could take their chances if the pair breaks below the level. In the meantime, the short-term picture shows that there are little chances of that happening as the pair is developing above all of its moving averages, and with the 20 SMA maintaining its bullish slope above the larger ones. Technical indicators lack directional strength but hold above their midlines. Another leg higher could be expected on a break above 108.08, the weekly high.

Support levels: 107.30 106.90 106.65

Resistance levels: 108.10 108.45 108.80

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 loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 

EUR/USD News

GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.

GBP/USD News

XAU/USD drops $50 from record highs to the $2020 area

Gold prices are falling sharply on Friday, trading below $2040/oz at the moment. Earlier on Friday, the yellow metal reached at $2075, a new record high.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI extends slide toward $41, on track to post weekly gains

Crude oil prices continued to fall on Friday and the barrel of West Texas Intermediate (WTI) touched a daily low of $41.05 before recovering modestly.

Oil News

Forex Majors

Cryptocurrencies

Signatures