- USD/JPY caught some fresh bids on Friday and has now recovered the previous day’s losses.
- The prevalent risk-on environment undermined the safe-haven JPY and remained supportive.
- The emergence of some buying around the USD provided an additional boost to the major.
The USD/JPY pair maintained its bid tone through the mid-European session and was last seen hovering near the top end of its daily trading range, around mid-109.00s.
A combination of supporting factors assisted the USD/JPY pair to regain positive traction on the last day of the week and reverse the previous day's post-US CPI losses. The underlying bullish tone in the financial markets – as depicted by an extended rally in the global financial markets – undermined the safe-haven Japanese yen. This, along with a modest pickup in the US dollar demand, remained supportive of the intraday positive move.
In fact, the key USD Index inched back closer to weekly tops and seemed rather unaffected by the ongoing decline in the US Treasury bond yields. Investors largely shrugged off Thursday's hotter-than-expected US CPI print and remain convinced that the Fed will retain its ultra-lose monetary policy stance for a longer period. This, in turn, dragged the yield on the benchmark 10-year US government bond to the lowest level since early March.
Market participants now look forward to the release of the Preliminary Michigan US Consumer Sentiment index for some impetus. The key focus, however, will remain on the upcoming FOMC policy meeting on June 15-16. Hence, it remains to be seen if bulls are able to capitalize on the move or the USD/JPY pair meets with some fresh supply at higher levels. Nevertheless, the pair remains on track to end flat for the week, pointing to indecision among traders.
Technical levels to watch
|Today last price||109.54|
|Today Daily Change||0.21|
|Today Daily Change %||0.19|
|Today daily open||109.33|
|Previous Daily High||109.8|
|Previous Daily Low||109.31|
|Previous Weekly High||110.33|
|Previous Weekly Low||109.33|
|Previous Monthly High||110.2|
|Previous Monthly Low||108.34|
|Daily Fibonacci 38.2%||109.49|
|Daily Fibonacci 61.8%||109.61|
|Daily Pivot Point S1||109.16|
|Daily Pivot Point S2||108.99|
|Daily Pivot Point S3||108.67|
|Daily Pivot Point R1||109.65|
|Daily Pivot Point R2||109.96|
|Daily Pivot Point R3||110.13|
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.