USD/JPY Current Price: 109.49

  • The focus shifts to US December employment figures, to be out early Friday.
  • Japanese yen under pressure amid persistent risk-on mood.
  • USD/JPY retains its bullish stance trading just below the critical 109.70 area.

The USD/JPY pair extended its advance to 109.57, a fresh weekly high, amid the persistent upbeat mood. US Treasury yields continued to advance but retreated ahead of the close to finish the day unchanged. Nevertheless, the Japanese currency remained under pressure as speculative interest favoured high-yielding assets. The pair made most of its gains during the first half of the day, with bulls unable to find a catalyst to keep pushing it higher.

Japan will release the November Overall Household Spending early Friday, foreseen at 2.5% vs. the previous -5.1%. The country will also release the preliminary estimate of the November Leading Economic Index, expected at 90.6 from 91.6. The Coincident Index for the same month is expected at 93.2 against the previous 95.3. More relevantly, the US will release its Nonfarm Payroll monthly report later in the day.

USD/JPY short-term technical outlook

The USD/JPY pair retains its positive tone although further gains will depend on the upcoming US monthly employment report to be out this Friday. In the 4-hour chart, the pair remains well above all of its moving averages, with the 20 SMA having extended its advance below the larger ones. Technical indicators lack directional strength, consolidating within overbought levels.  The key resistance continues to be the 109.70 area, where the pair met sellers multiple times throughout December.

Support levels: 109.25 108.90 108.50  

Resistance levels: 109.70 110.00 110.40

View Live Chart for the USD/JPY

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