USD/JPY Current price: 109.60

  • Japan’s Gross Domestic Product is expected to have improved to 0.2% QoQ in Q2.
  • US Treasury yields plunged on Friday, weighing on USD/JPY.
  • USD/JPY is poised to extend its decline on a break below 109.50.

The USD/JPY pair edged sharply lower and settled at 109.60, ending the week with losses. The pair retreated from a one-month high of 110.79 as investors dumped the greenback. The slide gained bearish momentum on Friday, as US government bond yields retreated, with the yield on the 10-year Treasury note settling at 1.28%.  Meanwhile, Wall Street managed to post modest gains, as a series of earnings reports partially offset the dismal mood. As a result, the DJIA and the S&P 500 keep posting record highs.

Japan will start the week by publishing the preliminary estimate of the second quarter Gross Domestic Product, foreseen at 0.2% QoQ from -1% in Q1. The country will also release June Industrial Production and Capacity Utilization.

USD/JPY short-term technical outlook

According to the daily chart, the USD/JPY pair is bearish. It has broken below its 20 and 100 SMAs, which anyway remain directionless, while technical indicators crossed below their midlines, maintaining their strong bearish slopes. The 4-hour chart shows that the pair plunged below all of its moving averages, with the 20 SMA turning bearish although above the longer ones. Technical indicators reached oversold conditions, with the Momentum bouncing modestly but the RSI still heading lower at around 27, skewing the risk to the downside.

 Support levels: 109.50 109.05 108.60

Resistance levels: 109.90 110.35 110.80

 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. 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.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD drops towards 1.0150 amid risk-aversion, ahead of US data

EUR/USD drops towards 1.0150 amid risk-aversion, ahead of US data

EUR/USD turns south after rejection at 1.0200 as risk-off flows dominate. US dollar finds demand, despite weaker yields and cautious Fed minutes. The euro looks vulnerable amid the deepening EU energy crisis and growth risks.

EUR/USD News

GBP/USD: Bears tighten grips on the way to 1.1930

GBP/USD: Bears tighten grips on the way to 1.1930

GBP/USD extends the previous day’s pullback from 21-DMA as MACD teases bears. Weekly low holds the key to further downside towards May’s bottom. Previous resistance line from April appears a tough nut to crack for bears. Two-month-old resistance line, 100-DMA adds to the upside filters.

GBP/USD News

Gold eyes a daily close below 21 DMA for further downside Premium

Gold eyes a daily close below 21 DMA for further downside

Gold price is fading the early bounce this Thursday, as the US dollar is seeing renewed buying interest amid the extension of risk-off flows. Dire Chinese economic outlook combined with Fed’s caution on a potential downturn keep investors on the edge.

Gold News

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price is on the verge of triggering another run-up, but it needs to allow investors who partook in the previous rally to book profits. As a result, more market participants are likely to flock around the next support level, triggering another leg-up.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures