USD/JPY: A very busy week ahead to bring pair to life

  • The US Dollar was unable to attract demand on Friday although the DXY did hold above the 21-day moving average.
  • Chair Powel, US CPI, FOMC minutes and trade talks take spot-light

USD/JPY is a touch lower in the open this week despite a risk-on session into the close. USD/JPY is currently trading at 106.79 and is lower by -0.10% having traded between 106.79 and 106.63.

The US Dollar was unable to attract demand on Friday although the DXY did hold above the 21-day moving average and has not extended beyond the mid-week low. Stocks, on the other hand, did make a stronger performance with the Dow Jones Industrial Average, DJIA, added 372.68 points, or 1.42%, to 26,573.72 while the S&P 500 index put on 41.38 points or 1.42% to 2,952.01. The Nasdaq Composite climbed 110.21 points, or 1.4%, to 7,982.47.

Disappointing US employment data did not impact so much, especially on rates; The front-end US Treasuries were little changed as a 2.5bp rally in 30s helped to flatten the curve. However, the jobs report certainly left the door open for a rate cut, potentially as soon as this month's interest rate decision meeting. 

"The September US jobs report shows payrolls growth of 136,000, which was a touch weaker than the 145,000 consensus. It reinforces the message that jobs growth is slowing and with wages also undershooting expectations – growth of 2.9% year-on-year versus expectations of 3.2% - the fundamentals underpinning consumer spending may not be as strong as we had believed,"

analysts at ING Bank explained. 

Eyes on the Fed and CPI

The key for the week ahead will be trade talks and the US Consumer Price Index as well as the Federal Open Market Committee's minutes of the prior Fed' interest rate decision. Chair Powell will also deliver further remarks at the annual NABE Conference next week. 

"We look for headline CPI to tick up a tenth to 1.8% y/y in September (0.1% m/m) despite another monthly decline in energy prices. Core inflation should stay unchanged at 2.4% y/y, reflecting a firm 0.2% m/m advance — though slightly softer than in Jun-Aug, as core goods inflation was likely softer m/m. That said, a steady 0.2% m/m gain in services should support core prices,"

analysts at TD Securities explained. 

USD/JPY levels


Today last price 106.8
Today Daily Change -0.13
Today Daily Change % -0.12
Today daily open 106.93
Daily SMA20 107.7
Daily SMA50 106.99
Daily SMA100 107.71
Daily SMA200 109.1
Previous Daily High 107.13
Previous Daily Low 106.58
Previous Weekly High 108.48
Previous Weekly Low 106.48
Previous Monthly High 108.48
Previous Monthly Low 105.74
Daily Fibonacci 38.2% 106.92
Daily Fibonacci 61.8% 106.79
Daily Pivot Point S1 106.63
Daily Pivot Point S2 106.33
Daily Pivot Point S3 106.08
Daily Pivot Point R1 107.18
Daily Pivot Point R2 107.43
Daily Pivot Point R3 107.73



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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD consolidates losses below 1.3150 amid a tighter election poll

GBP/USD is trading below 1.3150, consolidating its losses after YouGov's MRP poll showed a tighter Conservative majority ahead of the UK elections on Thursday. Trade headlines and the Fed decision are also awaited.


EUR/USD remains pressured below 1.11 amid trade uncertainty, ahead of the Fed

EUR/USD is trading below 1.11, consolidating its gains. Uncertainty about the planned US tariffs on China looms and tension is mounting ahead of US inflation and the all-important Fed decision.


Forex Today: Boris gets a blow from big poll, tariff threat looms, focus on the Fed

President Donald Trump has yet to decide on the December 15 tariffs, according to the Wall Street Journal. On the other hand, the paper says that negotiators are laying the groundwork for a deal.

Read more

Gold stalls two-day winning streak on the Fed day, trade jitters continue

Gold prices register a mild loss of -0.05% while hovering below $ 1465 on Wednesday. The yellow metal seems to have lacked buying interest ahead of the key monetary policy meeting by the US Federal Reserve (Fed).

Gold News

USD/JPY: 200-hour EMA questions immediate rising trend-channel

USD/JPY recently took a U-turn from 200-hour Exponential Moving Average (EMA). Even so, it stays well within the two-day-old rising trend-channel formation. The pair trades around 108.75 at the press time on Wednesday.