- The USD/JPY edges higher in the year’s last trading day, up some 0.03%.
- A risk-off market mood put capped the downtrend of the USD/JPY.
- USD/JPY Price Forecast: The upward bias to continue, a break above 115.20 would open the door for a test of the YTD high at 115.52.
As of year-end looms, the USD/JPY extends its rally to three consecutive days, trading at 115.12 during the New York session at the time of writing. A risk-off market mood, as portrayed by US equity indices trading in the red, while the CAC 40 and FTSE 100, the only two European stock markets open, slide between 0.28% and 0.32%, each.
In the meantime, US Treasury yields, with the 10-year benchmark note, edge lower one and a half basis points, down to 1.502%, a headwind for the USD/JPY. The US Dollar Index, a measure of the greenback’s value against a basket of six rivals, slides some 0.28%, sits at 95.70.
Thin liquidity conditions attributed to holidays in Japan, Australia, and New Zealand kept the USD/JPY within familiar levels. The lack of worldwide macroeconomic news, as investors book profits, put a lid on the USD/JPY, which in the last hour or so, retraced from monthly highs.
USD/JPY Price Forecast: Technical outlook
The USD/JPY hourly chart portrays the pair has an upward bias, even though it dipped to the confluence of the 50-hour simple moving average (SMA) and the daily pivot point around 115.06.
To the upside, USD/JPY’s first resistance is the year-to-date high is the November 24 high at 115.52. A breach of that level would expose crucial resistance levels, like the 116.00, followed by the December 2016 swing lows at 118.65.
On the other hand, the first line of defense for USD bulls would be 115.00. A break of that level would be the December 29 cycle low at 114.67 and the 200-hour SMA at 114.60.
-637765646941546731.png)
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.
Recommended content
Editors’ Picks
EUR/USD keeps rallying towards 1.0700 on hawkish Lagarde
EUR/USD is pushing higher towards 1.0700, as the euro capitalizes on the upbeat German IFO and hawkish ECB Chief Lagarde. Lagarde said ECB is in a position to exit negative rates by end of Q3. The US dollar extends its sell-off amid risk-on flows.
GBP/USD surges towards 1.2600 ahead of BOE’s Bailey
GBP/USD is extending gains towards 1.2600 amid broad US dollar weakness and mixed market sentiment. The pair remains firmer around a fortnight's high, as British policymakers sound hopeful of overcoming the Brexit and inflation-led economic woes. Bailey's speech awaited.
Gold climbs to two-week high, around $1,865 area amid weaker USD
Gold kicked off the new week on a positive note and build on its recent goodish rebound from the $1,786 region, or the lowest level since late January touched last Monday. The XAUUSD climbed to a nearly two-week high, around the $1,863 zone in the last hour.
Cardano whales enter buying spree before the Vasil hard fork
Cardano price is showing an interesting set up as it struggles to make a move above a crucial support level. A rejection could lead to a buying opportunity for patient investors before ADA explodes.
Week Ahead on Wall Street: Options expiry to the rescue on Friday but its official, we are in a bear market
Another wild and volatile week which seems to be the tone so far for 2022. Wild swings throughout the week were mirrored on Friday with wild intraday swings. The S&P 500 did manage to slide into a bear market territory on Friday.