USD/JPY Current price: 108.64
- News indicated that US-China trade talks got interrupted by disagreement on farm purchases.
- US President Trump anyway, said that talks are going OK.
- USD/JPY bearish in the short term, key Fibonacci support at 108.50.
The USD/JPY pair has extended its decline to 108.56 so far this Thursday, hurt by mounting tensions between the US and China. According to headlines released ahead of Wall Street’s close, both economies disagree about the amount of agricultural purchases, halting negotiations. However, later in the day, US President Trump said that talks were marching “rapidly,” partially offsetting the negative sentiment. Still, stocks trade in the red in Asia and Europe, although US futures stand near record highs.
Japan released the preliminary estimate of Q3 Gross Domestic Product, which resulted below the market’s estimate. According to the official report, the economy grew at the slowest pace in a year, at an annualised rate of 0.2%. In the three months to September, the economy grew 0.1%. Chinese data released overnight was also below expected, fueling appetite for safer assets.
The US session will bring the usual weekly unemployment figures and a couple of Fed’s speakers, including the second day of Powell’s testimony before the Congress. Given the limited impact of yesterday’s statement, it seems unlikely that his words would affect the market today.
USD/JPY short-term technical outlook
The USD/JPY pair trades around 108.65, below the 50% retracement of its latest daily advance. In the 4-hour chart, the pair is below its 20 and 100 SMA, with the shortest accelerating its slide below the larger one. Technical indicators, in the meantime, remain within negative territory, lacking directional strength and at weekly lows, keeping the risk skewed to the downside. The next Fibonacci support comes at 108.50.
Support levels: 108.50 108.15 107.70
Resistance levels: 108.90 109.35 109.60
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 climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.