USD/JPY Forecast: Intraday recovery rejected by bearish 100 SMA

Valeria Bednarik FXStreet

USD/JPY Current price: 106.05

Japanese Q2 GDP was confirmed at -0.6% QoQ, matching the previous estimate.
US ISM Manufacturing PMI is foreseen at 53.6 in July from 52.6 in June.
USD/JPY is biased higher in the short-term but needs to move above 106.45.

The greenback is trading with a better tone this Monday, extending its Friday’s advance against most major rivals. The USD/JPY pair trades around the 106.00 level, after hitting a daily high of 106.43. Market players seem to be in a better mood at the beginning of a busy week, as equities and government bond yields are on recovery mode.

In the data front, Japan published the Q2 GDP, which came in at -0.6% QoQ, matching the previous estimate. Also, the July Jibun Bank Manufacturing PMI was out at the beginning of the day, bouncing from 42.6 to 45.2, beating expectations. The US session will bring the final version of the July Markit Manufacturing PMI, seen at 52 from 51.3, and the official ISM Manufacturing PMI, foreseen at 53.6 from 52.6 in the previous month.

USD/JPY short-term technical outlook

The USD/JPY pair is offering a moderate bullish bias in the short-term, as the 4-hour chart shows that the intraday rally stalled around a bearish 100 SMA. Nevertheless, the pair is developing above a bullish 20 SMA, while technical indicators have resumed their advances within positive levels. Bulls will be in a better position if the pair manages to break above the mentioned daily high.

Support levels: 105.60 105.25 104.80

Resistance levels: 106.45 106.80 107.10

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.