USD/JPY Current price: 109.99
- Japan’s November Machinery Orders came in at 18%, recovering from -6.1%.
- US Retail Sales are seen bouncing just modestly in December.
- USD/JPY holding near multi-month highs around the 110.00 figure.
The greenback remains weak this Thursday, although it trades within familiar levels against most major rivals. The USD/JPY pair is trying to recover above the 110.00 figure, helped by the absence of safe-haven demand.
The US and China had come to an initial agreement on trade, signing phase one of the deal on Wednesday. The market was disappointed amid the deal being mostly China’s compromise to buy a certain amount of US goods and services, without tariffs rollback. However, US President Trump said that levies could be removed in phase two, which he announced will start shortly. The general idea is that once those are out, the global economic slowdown will start reverting.
Japan released overnight November Machinery Orders, which came in at 18%, beating the market’s expectations and recovering from -6.1% in the previous month. The country also released the December Producer Price Index, which was up by 0.9% YoY as expected.
The market is now waiting for US Retail Sales, foreseen up in December by 0.3%. The Retail Sales Control Group reading is seen at 0.4% from 0.1% previously. Initial Jobless Claims and Business Inventories will also be published today.
USD/JPY short-term technical outlook
The USD/JPY is neutral-to-bullish, according to the 4-hour chart, as a bullish 20 SMA continues to lead the way up and providing dynamic support. The lack of follow-through beyond the recent 110.21 high keeps the Momentum indicator around its midline, although the RSI has picked up, currently around 65 and skewing the risk to the upside.
Support levels: 109.70 109.35 108.90
Resistance levels: 110.40 110.75 111.05
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.