USD/JPY Current price: 107.64
- The market’s mood improved as crude oil prices pared their slumps.
- The better performance of equities weighs on the dollar’s demand.
- USD/JPY has been trading neutral for over a week already.
Markets are in better shape this Wednesday, amid oil prices looking more stable, following a historic collapse. Asian indexes managed to recover their previous losses, underpinning their European counterparts. In this scenario, the greenback is weaker against its high-yielding rivals, although USD/JPY remains unmoved, stuck around the 107.70 price zone.
Investors, however, are far from optimistic, as the economic deadlock persists. Crude prices have stabilized, but remain at record lows, and there’s no return of demand in the foreseeable future. That said, the recovery in stocks is mostly linked to some solid earnings reports announced late Tuesday, and yet another stimulus package coming from the US. Given that the US won’t release economic data, the upcoming sessions will depend once again on sentiment.
USD/JPY short-term technical outlook
The USD/JPY pair retains its neutral stance, as it has been hovering around the current level for over a week. The 4-hour chart shows that the price converges with directionless moving averages, which stand in a tight range. Technical indicators, in the meantime, move back and forth around their midlines, without directional strength. The base of the range this week comes around 107.20, with a clear break below favouring a slide toward the 106.50 region.
Support levels: 107.20 106.95 106.50
Resistance levels: 108.10 108.50 108.85
View Live Chart for the USD/JPY
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 holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
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.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.