USD/JPY Current price: 112.25

  • Equities and yields pared the bleeding and attempt to recover some ground.
  • US Michigan Consumer Sentiment Index to close the macroeconomic week.

The USD/JPY pair bottomed at 111.82 late Thursday, its lowest in almost a month, as equities and yields were under strong pressure all through the day. The sour sentiment, however, cooled down during Asian trading hours, with worldwide equities out of the red, and Treasury yields posting modest bounces but off their weekly highs. The pair, however, remains confined to the lower end of its weekly range, as the dollar is still the weakest in the G-10 sphere. The pair hit a daily high of 112.49, below Thursday's one, before retreating to the current 112.30 price zone. There were no relevant macroeconomic news in Japan, and the US will release some minor figures related to trade prices, ahead of the more relevant Michigan Consumer Sentiment Index, the preliminary reading for October foreseen at 100.4 vs. September 100.1.

The short-term picture indicates that the risk remains skewed to the downside, as in the 4 hours chart, it is struggling around the 200 SMA, unable to clear it, while technical indicators have corrected extreme oversold conditions before resuming their declines, dip into negative ground. The pair depends mostly on government bond yields today and to a lesser extent, on US data. The pair will lose its downward bias on a firm recovery above 112.60.

Support levels: 111.85 111.50 111.20

Resistance levels: 112.60 113.00 113.40

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 recaptures 1.08 as coronavirus fears weigh on market mood

EUR/USD has recaptured 1.08 as US bond yields retreat in reaction to growing fears about the coronavirus outbreak economic impact. Earlier, the pair plunged amid weak German data.

EUR/USD News

GBP/USD bounces above 1.30 as markets shrug off wage figures

GBP/USD is trading above 1.30 as investors ignore weak UK wage figures and Brexit concerns once again. Coronavirus headlines are eyed.

GBP/USD News

Altcoins push hard not waiting for a Bitcoin reaction

The Altcoin market has only needed one business day to see prices rise sharply again. Bitcoin, still, has adopted the anchor function and for the moment is giving up the battle for the $10000.

Read more

Gold firmer, near $1,600/oz on coronavirus fears

Renewed fears around the Chinese coronavirus (COVID-19) have been supporting the demand for the safe haven metal in past hours, taking the ounce troy to levels just shy of the key $1,600 mark.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors

Cryptocurrencies

Signatures