USD/JPY Forecast: Heading towards November low at 103.17

Valeria Bednarik FXStreet

USD/JPY Current price: 103.82

Japan National inflation contracted by more than expected in October.
The poor performance of equities continues to favor the Japanese yen.
USD/JPY to accelerate its decline once below 103.50, the immediate support level.

The USD/JPY pair has traded uneventfully at the end of the week, closing Friday at 103.82. The Japanese currency benefited against its American rival from the poor performance of equities, with Wall Street closing in the red. Additionally, US Treasury yields edged lower, amid tensions between the US Federal Reserve and Treasury Secretary Steve Mnuchin, related to emergency funding programs.

Japan published the October National inflation, which came in worse than anticipated at -0.4% YoY. The core CPI matched expectations printing -0.7% YoY. The country also released the November preliminary Jibun Bank Manufacturing PMI that contracted to 48.3 from 48.7. Japan celebrates a holiday this Monday, which leaves the macroeconomic calendar empty.

USD/JPY short-term technical outlook

The USD/JPY pair has found sellers around 104.00 in the last two trading days, and technical readings suggest that a new leg lower is coming. In the daily chart, the pair is developing below firmly bearish moving averages, as technical indicators consolidate within negative levels. In the shorter-term, and according to the 4-hour chart, the risk is also skewed to the downside, as a bearish 20 SMA provides resistance, accelerating its slump below the larger ones. Technical indicators develop below their midlines but lack directional strength.

Support levels: 103.50 103.15 102.80

Resistance levels: 103.95 104.25 104.70

View Live Chart for the USD/JPY

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD looks to stabilize near 1.1600 as focus shifts to US data

EUR/USD is looking to stabilize near 1.1600 in the European session on Wednesday as traders breathe a sigh of relief before the top-tier US ADP jobs and ISM Services PMI data. A pause in the US Dollar uptrend helps the pair's recovery, but surging energy prices due to the Iran war will likely remain a drag.

GBP/USD stays weak near 1.3350 as USD preserves gains

GBP/USD stays in the red below 1.3350 in the European session on Wednesday. Escalating conflict in the Middle East keeps the "flight to safety" theme intact, supporting the US Dollar against the Pound Sterling. Traders will take more cues from the US ADP Employment and ISM Services Purchasing Managers Index reports, which are due later on Wednesday.

Gold retains positive bias amid sustained safe-haven flows and modest USD pullback

Gold maintains its offered tone through the first half of the European session, though it lacks follow-through and remains below the $5,200 mark. Investors remain concerned about a prolonged conflict in the Middle East and its impact on the global economy amid an already uncertain environment.

ADP Employment Report set to signal stronger February jobs growth, little effect on Fed outlook

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday. The so-called ADP Employment Change report is expected to show that the United States private sector added 50K new positions in the month, following the 22K gained in January.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.