• USD/JPY remains pressured around weekly low, down for the third consecutive day.
  • Mixed data from Japan, absence of bond traders failed to stop bears amid broad-based US Dollar weakness.
  • Concerns surrounding Fed’s next move, China underpin cautious optimism, weigh on the USD.

USD/JPY holds lower ground near the weekly bottom surrounding 138.60 during the initial hour of Thursday’s European session. In doing so, the Yen pair prints a three-day losing streak amid broad US Dollar weakness while ignoring mixed numbers from Tokyo.

Japan’s manufacturing activity shrunk at the fastest pace in two years in November while the activity of the services industry also eased. That said, Japan’s Jibun Bank Manufacturing PMI dropped to 49.4 versus 50.7 prior release and forecasts. Further, the Services counterpart flashed the 50.00 figure compared to 53.1 expected and 53.2 previous readings.

Additionally, Japan’s Coincident Index rose past 101.1 market forecasts to 101.4, versus an upwardly revised 101.8 prior, whereas the Leading Economic Index came in as 97.5 compared to 97.4 expectations and 101.30 previous figures.

That said, easing fears of the US Federal Reserve’s (Fed) aggressive rate hikes, especially after the previous day’s Federal Open Market Committee (FOMC) Meeting Minutes, keeps the USD/JPY hopeful. On the same line are the hopes for Chinese government stimulus and a cut to the People’s Bank of China’s (PBOC) Reserve Requirement Ratio (RRR), as well as hopes of quick recovery from the COVID-19-led grim economic conditions.

It should be noted that the S&P 500 Futures join firmer Asia-Pacific shares to print mild gains and weigh on the US Dollar but the Treasury yields are inactive amid the Thanksgiving holiday. Further, the US Dollar Index (DXY) remains pressured towards the monthly low near 105.35, around the weekly low of 105.63 by the press time.

Moving on, a lack of major data/events and holiday mood in the US might challenge the USD/JPY bears. Even so, headlines surrounding China and Japan could entertain the Yen pair traders.

Technical analysis

A U-turn from the 38.2% Fibonacci retracement level of the May-October upside, a clear downside break of the 100-DMA and bearish MACD signals favor USD/JPY bears.

Also read: USD/JPY Price Analysis: Bears approach 138.40 key support

Additional important levels

Overview
Today last price 138.84
Today Daily Change -0.65
Today Daily Change % -0.47%
Today daily open 139.49
 
Trends
Daily SMA20 143.68
Daily SMA50 144.94
Daily SMA100 141.12
Daily SMA200 133.72
 
Levels
Previous Daily High 141.61
Previous Daily Low 139.17
Previous Weekly High 140.8
Previous Weekly Low 137.67
Previous Monthly High 151.94
Previous Monthly Low 143.53
Daily Fibonacci 38.2% 140.1
Daily Fibonacci 61.8% 140.68
Daily Pivot Point S1 138.57
Daily Pivot Point S2 137.64
Daily Pivot Point S3 136.12
Daily Pivot Point R1 141.01
Daily Pivot Point R2 142.54
Daily Pivot Point R3 143.46

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD falls below 1.0500 after US NFP data

EUR/USD falls below 1.0500 after US NFP data

EUR/USD dropped below 1.0450 but managed to stage a modest rebound. The US Dollar preserves its strength against its rivals and doesn't allow the pair to gain traction after the data from the US showed that Nonfarm Payrolls rose by 263,000 in November.

EUR/USD News

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD lost nearly 100 pips with the immediate reaction to the upbeat November jobs report from the US and broke below 1.2200. The US Dollar Index clings to strong daily gains above 105.00 after the data showed that Nonfarm Payrolls rose by 263,000.

GBPUSD News

Gold retreats below $1,790 as US yields surge on US NFP

Gold retreats below $1,790 as US yields surge on US NFP

Gold price turned south and dropped below $1,790 in the early American session. The benchmark 10-year US Treasury bond yield is up more than 2% on the day near 3.6% after the bigger-than-expected November job growth, weighing heavily on XAU/USD.

Gold News

FTX exchange collapse, loss of $3.1 billion could have been avoided on one condition

FTX exchange collapse, loss of $3.1 billion could have been avoided on one condition

FTX exchange, founded by Samuel Bankman-Fried (SBF), has consistently made headlines over the past month for its liquidity crisis and triggering a collapse in the crypto ecosystem.

Read more

AMC advances more than 3% in premarket day after being halted

AMC advances more than 3% in premarket day after being halted

AMC stock is up 3.4% in Friday's premarket just a day after authorities halted trading due to unusual volatility. Thursday saw options volume three times higher than the 20-day average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures