USD/JPY consolidates in a range, comfortably above 109.00 handle

  • Positive trade headlines led to a dramatic turnaround on Thursday.
  • Conflicting reports kept a lid on any strong follow-through move.

The USD/JPY pair seesawed between tepid gains/minor losses through the Asian session on Friday and is currently placed in the neutral territory, around the 109.25 region.
The pair on Thursday witnessed a dramatic intraday turnaround and rallied over 90 pips from daily lows amid signs of progress in resolving a 16-month long trade war between the world's two largest economies. Officials said on Thursday that both China and the United States have agreed to roll back tariffs in a "phase one" trade deal if it is completed.

Focus remains on trade

The headlines triggered a fresh wave of global risk-on trade and weighed heavily on the Japanese Yen's perceived safe-haven status. The risk-on mood further led to a strong upsurge in the US Treasury bond yields, which helped revive the US Dollar demand and remained supportive of the pair's strong positive momentum to the highest level since late-May.
However, conflicting reports, suggesting that the subject of rolling back tariffs faced fierce internal opposition in the White House, raised some scepticism about a trade deal and kept a lid on any strong follow-through. Adding to this, White House adviser Peter Navarro said that there is no agreement at this time to remove any of the existing tariffs.
Subsequent developments led to a slightly softer tone on the last trading day of the week and turned out to be one of the key factors exerting some downward pressure on the major. Meanwhile, the pullback remained limited, at least for the time being, as investors awaited fresh trade developments before placing any aggressive directional bets.

Technical levels to watch


Today last price 109.26
Today Daily Change -0.01
Today Daily Change % -0.01
Today daily open 109.27
Daily SMA20 108.67
Daily SMA50 107.92
Daily SMA100 107.62
Daily SMA200 109.04
Previous Daily High 109.49
Previous Daily Low 108.65
Previous Weekly High 109.29
Previous Weekly Low 107.89
Previous Monthly High 109.29
Previous Monthly Low 106.48
Daily Fibonacci 38.2% 109.17
Daily Fibonacci 61.8% 108.97
Daily Pivot Point S1 108.78
Daily Pivot Point S2 108.29
Daily Pivot Point S3 107.94
Daily Pivot Point R1 109.63
Daily Pivot Point R2 109.98
Daily Pivot Point R3 110.47



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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.


GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.


Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News