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

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.

AUD/USD jumps to 0.7050, fresh one-month top after hot Australian CPI

AUD/USD attracts buyers for the second straight day on Wednesday, rising to a fresh high since September 23 during the Asian session. A hot Australian CPI print reaffirmed bets for an imminent RBA rate hike in November and boosted the Australian Dollar. Meanwhile, the US Dollar pauses after a three-day rally to a near two-week high ahead of the crucial FOMC rate decision, lending additional support to the currency pair.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold sticks to intraday losses below $4,050 as USD retains bullish bias ahead of FOMC

Gold remains offered below $4,050 during Wednesday's early European session, snapping a two-day winning streak ahead of the key central bank event. The US Federal Reserve is scheduled to announce its policy decision later today and is widely expected to keep rates unchanged. Meanwhile, the focus will remain on the accompanying monetary policy statement and Fed Chair Kevin Warsh's comments during the post-meeting press conference.

Zcash's bullish momentum mounts on steady ETF inflows, retail confidence

Zcash extends steady recovery above $1,300 on Wednesday, approaching a key resistance near $1,373. Grayscale’s ZEC-focused Exchange-Traded Fund sees persistent buying pressure, with six straight days of inflows, including more than $3 million on Tuesday.

BoC expected to raise interest rates to 2.50%

The Bank of Canada is expected to raise its benchmark interest rate by 25 basis points to 2.50% on Wednesday, as persistent inflation concerns put pressure on policymakers to tighten monetary policy despite growing signs of economic weakness. According to a Reuters poll, 19 of 34 economists anticipate a rate hike, which would mark the central bank's first increase since July 2023.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.