USD/JPY Current price: 108.59
- Better market mood barely enough to keep the USD/JPY pair afloat.
- Japanese Machine Tool Orders fell a whopping 27.3% in May, adding to concerns about the country's financial health.
Having been unable to overcome the 108.65 Fibonacci resistance Monday, the USD/JPY pair eased during the last two sessions, falling to 108.31, where another Fibonacci level offered support. The pair bounced amid prevailing positive mood, as equities advanced in Asia and Europe, while US Treasury yields extended their gains, although modestly. Overnight, Japan released May's Money Supply, which increased 2.7% YoY, and Machine Tool Orders for the same month, which plunged a whopping 27.3% following a 33.4% fall in April.
The pair bounced from the mentioned low, once again struggling to surpass the mentioned Fibonacci resistance in the 108.60 price zone. The US calendar will be quite light, with minor data scheduled for today that hardly can affect sentiment-related trading. The country will release the May NFIB Business Optimism Index, and Producer Prices for the same month, seen up by 0.2% MoM and by 2.3% YoY. Later in the American afternoon, the country will publish the June IBD/TIPP Economic Optimism Index, previously at 58.6.
The USD/JPY pair practically filled the weekly opening gap, giving bulls a slightly encouraging signal, although an upward extension through the mentioned critical resistance area is needed to confirm further gains ahead. Technical readings in the 4 hours chart offer a neutral-to-positive stance, as the price holds above its 20 SMA, which have lost its bullish strength and stands pat a couple of pips above the mentioned Fibonacci support, while the Momentum indicator eases within positive levels and the RSI heads nowhere around 53. The risk will turn to the downside only with a break below 107.90, unlikely in the short-term.
Support levels: 108.25 107.90 107.55
Resistance levels: 108.90 109.30 109.55
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
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD mired near 1.0730 after choppy Thursday market session
EUR/USD whipsawed somewhat on Thursday, and the pair is heading into Friday's early session near 1.0730 after a back-and-forth session and complicated US data that vexed rate cut hopes.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.