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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.