USD/JPY falls under 148.30 as risk-off flows dominate jumpy markets, Japanes Current Account flubs the read

The USD/JPY fell back into familiar lows for Monday, declining through the 149.00 handle to trade into 148.40.
After the weekend's Gaza escalation, risk appetite remains twitchy.
Markets head into another round of US inflation data due in the back half of the trading week.

Joshua Gibson FXStreet

The USD/JPY traded down on Monday, slipping 0.67% as market flows tussled with risk aversion following a Hamas rocket attack over the weekend that left 700 Israelis and at least 12 Americans dead over the weekend. The Israeli counteroffensive claimed another 700 Palestinian lives, and broader markets are facing fears that the worst escalation of the long-running Gaza conflict could see the region embroiled in a geopolitical storm, which could threaten trade, supply, and production in the Middle East.

Forex Today: US Dollar weakens despite Middle East concerns

The Japanese Current Account (non-seasonally adjusted) for August came in at , versus the forecast ¥3,090.9B and the previous reading of ¥2,771.7B.

Japan Trade Balance misses the mark, prints a miss at ¥2,279.7B versus the forecast ¥3,090.9B

The week ahead sees a decent collection of US data over the horizon: Wednesday sees US Producer Price Index (PPI) figures, Thursday has another round of Consumer Price Index (CPI) inflation measures, and Friday will cap off the trading week with the Michigan Consumer Sentiment Index.

The Japanese economic calendar data docket is notably thin for the remainder of the week, with strictly low-impact numbers on the offering.

USD/JPY Technical Outlook

Despite the USD/JPY's Monday declines, the pair remains overall incredibly well-bid, peaking at yearly highs at the 150.00 major handle and trading incredibly far above the 200-day Simple Moving Average (SMA), currently turning bullish into 139.00.

Short interest will need to make a decisive break of the 50-day SMA near 147.00 before they can continue on making a run at the last meaningful swing low from all the way back in July into 138.00, while an upside continuation runs the risk of policy intervention from the Bank of Japan (BoJ) on behalf of the Yen moving forward.

USD/JPY Daily Chart

USD/JPY Technical Levels

USD/JPY

Overview
Today last price	148.33
Today Daily Change	-1.00
Today Daily Change %	-0.67
Today daily open	149.33

Trends
Daily SMA20	148.42
Daily SMA50	146.53
Daily SMA100	143.74
Daily SMA200	138.44

Levels
Previous Daily High	149.54
Previous Daily Low	148.36
Previous Weekly High	150.16
Previous Weekly Low	147.32
Previous Monthly High	149.71
Previous Monthly Low	144.44
Daily Fibonacci 38.2%	149.09
Daily Fibonacci 61.8%	148.81
Daily Pivot Point S1	148.61
Daily Pivot Point S2	147.9
Daily Pivot Point S3	147.44
Daily Pivot Point R1	149.79
Daily Pivot Point R2	150.25
Daily Pivot Point R3	150.96

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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