USD/JPY flirting with lows, around 111.00 handle

Following yesterday's volatile swing, the USD/JPY pair came under some renewed selling pressure on Friday and was seen flirting with the 111.00 handle.

Earlier on Thursday, the pair extended post-FOMC retracement from weekly tops near the 112.20 region and dropped back closer to one-month lows around 110.80 area. As the day progressed, the pair staged a goodish recovery and touched a session high level of 111.71, supported by broad based greenback recovery. 

With the US Dollar recovery move losing steam just ahead of the 94.00 handle, a fresh wave of global risk aversion trade boosted the Japanese Yen's safe-haven appeal and was seen weighing on the major. 

The Japanese Yen also benefitted from today's better-than-expected release of household spending, Tokyo Core CPI and a drop in unemployment rate. Also collaborating to the Yen's strength was the Bank of Japan (BOJ) summary of opinions from the July meeting concluded last week, which revealed that policymakers don't foresee the need for any additional monetary easing as the upward momentum in prices remains intact. 

Further downside has been limited, at least for the time being, as investors seemed reluctant to place aggressive bets ahead of today's release of the advance US growth figures for the second quarter of 2017, due later during the NA session. 

   •  US: GDP back on trend? - ING

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes: "Following the confirmation of the bullish reversal on Tuesday, the upticks have been met with fresh offers. Thus, one may vouch for a sell-off to 110.00 levels, however; it is worth noting that Monday’s Doji candle low of 110.62 has remained unchallenged… Dips below 110.98 (61.8% Fib) have been short lived this week. Thus, it is safe to assume the bears stand exhausted and the spot is on track to revisit the upward sloping 200-DMA level of 112.01."

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: Bullish breakout faces next challenge at 1.1150

The EUR/USD pair closed the week at around 1.1100, its highest settlement in two months, as poor US data coupled with a relief rally of high-yielding assets ahead of the close. Several European countries will start the week celebrating a holiday.


GBP/USD: Post-Brexit relationship taking centre stage

The GBP/USD pair hit 1.2393 on Friday, a two week high, retreating sharply from the level ahead of Trump’s speech to later recover on relief and settle at 1.2345. Cable is technically neutral, although the bullish potential seems limited.


Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News