USD/JPY Forecast: Holding just below 107.00

Valeria Bednarik FXStreet

USD/JPY Current price: 106.82

Japanese Machine Tool Orders plummeted 31.1% YoY in July, according to preliminary estimates.
US Initial Jobless Claims foreseen at 1.12M from 1.18M in the previous week.
USD/JPY is trading near 107.00 with the risk skewed to the upside.

The USD/JPY pair is trading near its recent highs in the 107.00 price zone, holding on to gains but unable to run amid decreased interest on the greenback. Safe-haven assets, however, have been unable to appreciate, but instead consolidate around their Wednesday’s closing levels. Supporting the pair, government bond yields hold near their recent one-month highs. Equities, on the other hand, trade mostly in the red, although not far from their opening levels.

Japan published at the beginning of the day the July Producer Price Index, which was up 0.6% in the month, and down 0.9% when compared to a year earlier, both figures beating expectations. Machine Tool Orders, in the same month, plummeted 31.1% YoY. The US will publish today its usually weekly unemployment data. Initial Jobless Claims are foreseen at 1.12M down from 1.18M in the previous week.

USD/JPY short-term technical outlook

The USD/JPY pair continues to comfortably consolidate around 106.80. The short-term picture indicates that the risk is skewed to the upside, as the price remains above its 200 SMA, which provides intraday support around 106.56, the daily low. The 20 SMA maintains its bullish slope, further advancing above the 100 SMA. Technical indicators, in the meantime, hold well above their midlines, although lacking directional strength. A break below the daily low should open doors for a steeper decline towards the 105.70 price zone.

Support levels: 106.55 106.25 105.70

Resistance levels: 107.00 107.45 107.80

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 hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.