USD/JPY is unchanged in Monday trading. In the North American session, the pair is trading at 112.00, down 0.02% on the day. There are no Japanese events on the schedule. In the U.S., the Empire State Manufacturing Index improved to 10.1, beating the estimate of 8.1 points. On Tuesday, Japan releases trade balance.

With the Japanese economy feeling the squeeze of the U.S.-China trade war and the BoJ offering negative interest rates, there isn’t much to attract investors to the yen unless risk appetite drops sharply. Trade talks between China and the U.S. are continuing, but last week a U.S. official said that an agreement could be months away. Still any progress between the sides would be good news for the export-dependent Japanese economy.

The International Monetary Fund  downgraded its economic forecasts last week, lowering its estimate of Japanese growth. The January forecast of 1.1%  was lowered to 1.0%. The IMF said that the downgrade was due to weaker Japanese exports, a result of the global trade war. The IMF also lowered its forecast for global growth, from 3.5% in January to 3.3%. Earlier in the week, a BoJ forecast downgraded its assessment for three of the country’s nine regions. Nonetheless, BoJ Governor Haruhiko Kuroda remained optimistic, saying that stronger domestic demand will offset the decline in exports, which would enable the economy to grow at a moderate pace.

USD/JPY hits six-week high as positive vibes continue

USDCAD

Open: 112.02 High: 112.10 Low: 110.89 Close: 112.00

 

USD/JPY Technical

S3

S2

S1

R1

R2

R3

109.37

110.28

110.90

112.16

112.93

113.70


USD/JPY posted small losses in the Asian session but recovered in European trade. The pair is steady in North American trade

  • 110.90 is providing support

  • 112.16 is under pressure in resistance

  • Current range: 110.90 to 112.16

Further levels in both directions:

  • Below: 110.90, 110.28, 109.37 and 108.11

  • Above: 112.16, 112.93 and 113.70

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD extends gains to fresh seven-week highs

The American dollar is under selling pressure amid a better market mood. EUR/USD above 1.1140 ahead of several Fed’s speakers that can rock markets.

EUR/USD News

GBP/USD trades around 1.29 amid speculation of Brexit vote

GBP/USD is trading around 1.29 as speculation mounts about the fate of the Brexit deal. UK PM Johnson faces a test in parliament after securing an accord with the EU.

GBP/USD News

USD/JPY: struggles near mid-108.00s pivotal point amid weaker USD

US Dollar Index slumped to multi-month lows below 97.50. 10-year US Treasury bond yield adds more than 1% on Friday. Wall Street's main indexes look to start the day little changed.

USD/JPY News

China’s downward economic path offers no escape from its trade problems

There were no surprises in China’s GDP figures as the government portrays an economy slipping steadily lower giving little promise of improvement or support for the waning global expansion.

Read more

Gold turns flat above $1,490 as USD remains under pressure

After dropping to a daily low of $1,485, the XAU/USD pair staged a modest rebound during the American trading hours and turned flat on the day near $1,492.

Gold News

Forex Majors

Cryptocurrencies

Signatures