USD/JPY Current Price: 108.94
- Risk sentiment improved modestly, safe-havens corrected overbought conditions.
- The Japanese services PMI returned to expansion territory in November with 50.3.
- USD/JPY advance seen as corrective, needs to rally past 109.30.
A modest improvement in the market’s mood helped the USD/JPY pair recover from 108.42, although the pair’s rally stalled ahead of the 109.00 figure, amid dismal US data. The ADP survey disappointed, as the private sector added just 67,000 new jobs in November, while services activity grew by less than anticipated in the same month. Nevertheless, European indexes managed to close in the green, amid headlines suggesting the US and China are discussing the amount of tariffs that would be reduced in the initial phase of a trade deal. Wall Street also ended with gains, although far from trimming its previous two-day losses. US Treasury yields bounced, with the yield on the benchmark 10-year Treasury note up to 1.79% from a daily low of 1.70%.
Japan released at the beginning of the day the Jibun Bank Services PMI for November, which improved by less than anticipated up to 50.3 from 49.7, anyway back in expansion territory. This Thursday, the Japanese macroeconomic calendar will be quite scarce, as it will only include a speech from BOJ’s Harada.
USD/JPY short-term technical outlook
The USD/JPY pair is trading near its daily high ahead of Wall Street’s close around 108.90, with the advance still seen as corrective according to the 4 hours chart, as the pair is currently battling with a directionless 100 SMA, but below a firmly bearish 20 SMA. Technical indicators, in the meantime, recovered from oversold readings, with the RSI having lost upward strength currently at 47. The positive momentum needs to drive the pair beyond 109.30 for bears to give up.
Support levels: 108.45 108.10 107.75
Resistance levels: 109.00 109.30 109.60
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.