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.

Eren Sengezer FXStreet

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

USD/JPY

Overview
Today last price	109.64
Today Daily Change	0.16
Today Daily Change %	0.15
Today daily open	109.48

Trends
Daily SMA20	110.19
Daily SMA50	110.07
Daily SMA100	109.59
Daily SMA200	107.12

Levels
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

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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