USD/JPY climbing back into 145.00, clawing back losses after tumble from 147.00


Share:
  • The USD/JPY is paring back some of Thursday's losses, climbing back into the 145.00 handle.
  • The US Dollar is fighting back after a steep decline sparked by a hawkish BoJ.
  • US NFP figures beat expectations, keeping the Greenback bid through Friday market action.

The USD/JPY is back on the rebound for Friday after posting an extreme backslide on Thursday, climbing four-tenths of a percent from the day's opening bids and looking to pare back losses. The US Dollar (USD) traded flat against the Japanese Yen (JPY) through the early half of the trading week before getting knocked back after the Yen caught a broad-market rally on the back of unusually hawkish comments from Bank of Japan (BoJ) Governor Kazuo Ueda.

Friday sees the Greenback attempting to claw back chart paper, rising back into the 145.00 handle after a brief dip back into 142.50 at the start of the final trading session of the week.

US Nonfarm Payrolls (NFP) broadly beat the street on Friday, posting a net gain of 199K jobs through November versus the forecast 180K, and climbing over October's net jobs gain of 150K. Broader markets have been ramping up bets of an accelerated path towards rate cuts from the Federal Reserve (Fed), with many market participants expecting the first rate cut from the Fed by as early as next March.

A still-tight US labor market continuing to add more jobs than expected throws a small wrench in the works, bolstered by accelerating Average Hourly Earnings in November, which came in at 0.4% MoM compared to the forecast 0.3%. Worker earnings appear to be gaining in the near term after October printed 0.2% MoM.

Read More: US Nonfarm Payrolls increase by 199,000 in November

Despite the Dollar-positive NFP release, the USD/JPY remains deep in the red for the trading week after the Yen surged in one of its single best trading days in 13 months, fueled by speculation that the BoJ could finally be ending its negative rate regime as the Japanese central bank moves towards tighter monetary policy.

Despite the BoJ fearing a collapse in Japanese inflation sometime in 2025, Japanese Core Consumer Price Index (CPI) inflation continues to run hotter than expected, hitting 2.9% for the year into October and chalking in a nineteenth straight consecutive month of inflation outrunning the BoJ's 2% upper target band.

BoJ Governor Ueda hinted that the BoJ may begin moving to tighten monetary policy if wage growth begins to accelerate heading into 2024, sparking a broad-market bid splurge that sent the USD/JPY tumbling over 4% peak-to-trough on Thursday. The US Dollar recovered some ground, and continues to see a moderate climb heading into the Friday market close, but still remains well off the week's high bids.

Next week will be another Fed watch scenario, with the Federal Reserve delivering their last rate call of 2023, followed by an update to the Fed's 'dot plot', or summary of forward-looking inflation expectations. Any kind of decline in Fed inflation forecasts will likely spark a mark risk relief rally, and could send the US Dollar tumbling even further as investors chomp at the bit for Fed rate cuts.

Japanese Yen price this week

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies this week. Japanese Yen was the weakest against the US Dollar.

  USD EUR GBP CAD AUD JPY NZD CHF
USD   1.30% 1.42% 0.84% 1.76% -1.07% 1.60% 1.50%
EUR -1.33%   0.13% -0.46% 0.47% -2.41% 0.30% 0.19%
GBP -1.45% -0.12%   -0.58% 0.35% -2.52% 0.17% 0.07%
CAD -0.85% 0.46% 0.59%   0.93% -1.94% 0.76% 0.64%
AUD -1.79% -0.47% -0.34% -0.93%   -2.91% -0.15% -0.27%
JPY 1.02% 2.36% 2.63% 1.92% 2.82%   2.66% 2.52%
NZD -1.61% -0.29% -0.17% -0.75% 0.17% -2.68%   -0.09%
CHF -1.52% -0.18% -0.05% -0.64% 0.28% -2.58% 0.11%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

USD/JPY Technical Outlook

The US Dollar is up four-tenths of a percent against the Yen on Friday, and looking for further upside momentum after climbing from Friday's early low of 142.50. Topside technical resistance from the 50-hour Simple Moving Average sits nearby just beyond the 145.00 handle, with further pressure from the 200-hour SMA descending into 146.75.

Thursday's dip and Friday's moderate recovery sees the USD/JPY setting up a technical bounce from the 200-day SMA just above 142.00, and the trick for Greenback bidders will be to push the pair back towards the 147.00 handle, where they can take a fresh run at the 50-day SMA parked just below the 150.00 major price level.

USD/JPY Hourly Chart

USD/JPY Daily Chart

USD/JPY Technical Levels

USD/JPY

Overview
Today last price 144.92
Today Daily Change 1.20
Today Daily Change % 0.83
Today daily open 143.72
 
Trends
Daily SMA20 148.74
Daily SMA50 149.38
Daily SMA100 147.45
Daily SMA200 142.29
 
Levels
Previous Daily High 147.38
Previous Daily Low 141.64
Previous Weekly High 149.68
Previous Weekly Low 146.66
Previous Monthly High 151.91
Previous Monthly Low 146.67
Daily Fibonacci 38.2% 143.83
Daily Fibonacci 61.8% 145.19
Daily Pivot Point S1 141.11
Daily Pivot Point S2 138.5
Daily Pivot Point S3 135.37
Daily Pivot Point R1 146.86
Daily Pivot Point R2 149.99
Daily Pivot Point R3 152.6

 

 

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

AUD/USD extends losses toward 0.6500 after softer Australian CPI data

AUD/USD extends losses toward 0.6500 after softer Australian CPI data

AUD/USD is extending losses toward 0.6500  in Asian trading on Wednesday. The Aussie pair is undermined by softer-than-expected Australian monthly CPI inflation data, which fans RBA rate cuts bets. Meanwhile, the US Dollar is building on its recovery amid cautious markets. 

AUD/USD News

EUR/USD grinds lower toward 1.0800 as USD extends recovery

EUR/USD grinds lower toward 1.0800 as USD extends recovery

EUR/USD is grinding lower toward 1.0800 in early European morning on Wednesday. The extended recovery in the US Dollar amid a deterioration in risk sentiment is weighing on the pair, as the focus shifts to a data-packed day ahead. 

EUR/USD News

Gold price remains confined in a range as traders await US inflation data on Thursday

Gold price remains confined in a range as traders await US inflation data on Thursday

Gold price (XAU/USD) edges higher during the Asian session on Wednesday and for now, seems to have stalled the previous day's modest pullback from the $2,040-$2,042 resistance. 

Gold News

Bitcoin price extends gains as capital inflows near all-time highs

Bitcoin price extends gains as capital inflows near all-time highs

Bitcoin (BTC) price remains northbound, a status that was invigorated by Monday reports on MicroStrategy and BlackRock. With growing optimism in the market, the risk appetite for investors is also proving elastic. 

Read more

Twiddling thumbs ahead of a US data barrage

Twiddling thumbs ahead of a US data barrage

Traders are keenly aware that the recent components of the Consumer Price Index (CPI) and Producer Price Index (PPI) have influenced the Personal Consumption Expenditures (PCE), and it is unlikely that they will receive an inflation print below the Federal Reserve's target rate.

Read more

Forex MAJORS

Cryptocurrencies

Signatures