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

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD near daily lows with mixed US data

The EUR/USD pair continues trading just above the 1.1000 level, as US Durable Goods Orders rose by 2.4%, largely surpassing the market’s expectations, although core readings plummeted in the red.

EUR/USD News

GBP/USD below 1.3000 ahead of BOE

The dollar continues to advance against all of its major rivals, getting an additional boost from upbeat CB Consumer Confidence. GBP/USD trading around 1.2980. BOE to have a monetary policy meeting this Thursday.

GBP/USD News

Bitcoin moving on the razor edge

Yesterday's positive day along the crypto board has brought the BTC/USD pair to the borderline between a bearish market and a free space where it can grow again in search of new historical highs. 

Read more

WTI bounces off lows, back above $53.00/bbl

After hitting new lows in levels last seen in early October 2019 near $52.00, prices of the WTI have managed to regains some attention and have retaken the $53.00 mark per barrel.

Oil News

USD/JPY rises further above 109.10 as Wall Street recovers

The USD/JPY pair rose further during the American session amid an improvement in market sentiment. It printed a fresh daily high at 109.19.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures