USD/JPY Current price: 104.14
- US Treasury yields pared gains and retreated, still standing at multi-month highs.
- Modest losses in equities prevent USD/JPY from extending its current advance.
- USD/JPY is bullish in the near-term faces critical resistance around 104.50.
The American dollar keeps advancing backed by a mixture of risk-aversion and speculation of more fiscal stimulus coming in the US. The USD/JPY pair hit 104.21, its highest in over three weeks, holding above the 104.00 mark. The advance was limited amid easing Treasury yields, which retreated modestly from multi-month highs as the week kicked in.
Japan started the week with a holiday, which means the country didn’t publish relevant economic data. The US calendar will also be quite light, as it includes some bond auctions and speeches from FOMC member. Meanwhile, European indexes are in the red, although losses are modest at the time being.
USD/JPY short-term technical outlook
The USD/JPY pair is trading around 104.10, retaining its bullish stance. In the 4-hour chart, the pair is developing above all of its moving averages. The 20 SMA heads firmly north above the 100 SMA and seems poised to gain ground beyond the 200 SMA. Technical indicators consolidate within overbought levels, without signs of bullish exhaustion. A daily descendant trend line coming from March 2020 provides critical resistance in the 104.50 region.
Support levels: 103.85 103.50 103.15
Resistance levels: 104.50 104.90 105.30
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.