USD/JPY clings to modest gains near 110.60, eyes on US data

  • USD/JPY edges slightly higher following Thursday's sharp decline.
  • US Dollar Index consolidates weekly losses, stays below 92.00.
  • Investors await inflation and consumer sentiment data from US.

Following Thursday's decline, the USD/JPY pair dropped to a fresh 10-day low of 109.36 on Friday but managed to stage a modest recovery. As of writing, the pair was up 0.18% on the day at 109.66.

DXY inches higher on Friday

Although the recovery witnessed in the 10-year US Treasury bond yield helped the pair limit its losses on Thursday, the broad-based selling pressure surrounding the greenback caused USD/JPY to edge lower. The US Dollar Index (DXY) closed the fourth straight day in the negative territory and lost 0.4%. 

Nevertheless, the DYX is posting small daily gains at 91.94 on Friday and allowing USD/JPY to stay green. Later in the session, the US Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) Price Index data for June. Meanwhile, S&P Futures and Nasdaq Futures are down 0.65% and 1%, respectively, suggesting that safe-haven flows could dominate the markets and restrict USD/JPY's movements.

On the other hand, the data from Japan showed on Friday that the Unemployment Rate edged lower to 2.9% in June from 3% in May while Industrial Production expanded by 6.2%, compared to the market expectation of 5%.

Additionally, Japanese Prime Minister Yoshihide warned on Friday that the coronavirus is spreading at an unprecedented speed in Japan. "We are worried that the virus will continue to spread further," Suga added and these remarks could be putting additional weight on the JPY's shoulders.

Technical levels to watch for


Today last price 109.64
Today Daily Change 0.16
Today Daily Change % 0.15
Today daily open 109.48
Daily SMA20 110.19
Daily SMA50 110.07
Daily SMA100 109.59
Daily SMA200 107.12
Previous Daily High 109.95
Previous Daily Low 109.42
Previous Weekly High 110.6
Previous Weekly Low 109.06
Previous Monthly High 111.12
Previous Monthly Low 109.19
Daily Fibonacci 38.2% 109.62
Daily Fibonacci 61.8% 109.75
Daily Pivot Point S1 109.29
Daily Pivot Point S2 109.09
Daily Pivot Point S3 108.76
Daily Pivot Point R1 109.81
Daily Pivot Point R2 110.14
Daily Pivot Point R3 110.34



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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more