USD/JPY Forecast: mildly bullish in the near-term

Valeria Bednarik FXStreet

USD/JPY Current price: 109.29

Market players are waiting for US data to decide where to go next.
Stocks and government yields tick higher, providing support to USD/JPY.
USD/JPY is neutral-to-bullish, still needs to break above 109.70.

The USD/JPY pair is unable to attract investors, hovering around the 109.30 figure, as demand for the greenback eased without affecting the behavior of safe-haven rivals. US Treasury yields are marginally higher, and so do equities, with European indexes trading in the green after the poor performance of its Asian rivals.

Holidays in Japan ever since the week started, exacerbate the quietness around USD/JPY. Market players are now waiting for US data to take some risks. The US will publish the ADP survey on private jobs creation, expected to have increased by 800K in April. The country will also release the April ISM Services PMI, foreseen at 64.3 from 63.7 previously.

USD/JPY short-term technical outlook

The USD/JPY pair has limited bearish potential in the near-term. The 4-hour chart shows that it is finding support around a bullish 20 SMA, which advances above the longer ones. Technical indicators lack directional strength, stuck around their midlines. The bullish case will be firmer if the pair breaks above 109.69, the weekly high.

Support levels: 109.15 108.70 108.25

Resistance levels: 109.70 110.10 110.50

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.