USD/JPY: in a minor recovery, sustained in Tokyo on 109 handle, can it last?

Ross J Burland FXStreet

Currently, USD/JPY is trading at 109.10, up 0.12% on the day, having posted a daily high at 109.22 and low at 108.87.

USD/JPY fell from 109.25 to 108.64 overnight and back to test a familiar support area with continued geopolitical concerns and continued concerns around the turnover of staff at the White House with the subsequent potential hold ups around any potential legislative requirements on key fiscal issues.

Subsequently, US 10yr treasury yields slipped from 2.20% to 2.17%, 2yr yields from 1.32% to 1.30%. Fed fund futures yields continued to price the chance of a December rate hike at around 40%

Dollar drifts lower ahead of Jackson Hole conference - ANZ

Meanwhile, Trump announced plans overnight to increase US military presence in Afghanistan contrary to his campaign pledge while the N.Korean situation took a temporary back seat. Markets await Trump's outline of the US strategy for Afghanistan in a TV address today, (US Monday 9 PM ET).

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet, explained that from a technical point of view, the 4 hours chart supports additional declines ahead, as the price remains well below bearish 100 and 200 SMAs. "Technical indicators hover within negative territory, although with limited bearish strength. Below 108.59, the low set last week, the pair has room to extend its decline down to 108.12, the mentioned yearly low."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD recovers further from one-month low set on Friday, eyes mid-1.1800s on weaker USD

The EUR/USD pair is seen building on Friday's late recovery from the 1.1750-1.1740 region, or a nearly one-month trough, and gaining some follow-through positive traction at the start of a new week. The momentum lifts spot prices to the 1.1835 area during the Asian session and is sponsored by a broadly weaker US Dollar.

GBP/USD gathers strength above 1.3500 amid tariff confusion

The GBP/USD pair gains traction to around 1.3520 during the early Asian session on Monday. The US Dollar faces some selling pressure against the Cable as tariff uncertainty lingers. Traders will take more cues from the US Producer Price Index report for January, which will be published later on Friday.

Gold rallies above $5,150 as Trump’s tariffs boost haven demand

Gold price extends the rally above $5,150 in the Asian session on Monday. The precious metal extends the rally amid US President Donald Trump’s tariff threats and uncertainty, which boost safe-haven flows. US-Iran geopolitical risks also linger, supporting the Gold price upside.

Week ahead: Markets brace for heightened volatility as event risk dominates

Dollar strength dominates markets as risk appetite remains subdued. A Supreme Court ruling, geopolitics and Fed developments are in focus. Pivotal Nvidia earnings on Wednesday as investors question tech sector weakness. Yen and aussie diverge; both pound and euro could recoup their losses.

Liberation day take two, the tariff machine just changed gears

Let me caveat this from the outset. What we are watching is first-order mechanics, not the grand macro endgame. This is the market’s immediate reflex to a 15% Trump tariff levy dressed up as judicial drama. The Supreme Court blocked Trump tarrif hammer. The White House came back with a scalpel.

Ripple bulls defend key support amid waning retail demand and ETF inflows

XRP ticks up above $1.40 support, but waning retail demand suggests caution. XRP attracts $4 million in spot ETF inflows on Thursday, signaling renewed institutional investor interest.