USD/JPY in search of a firm near-term direction, stuck in a range above mid-107.00s


  • USD/JPY remains confined in a one-week-old narrow trading band.
  • Weaker trading sentiment benefitted the JPY’s safe-haven demand.
  • Sustained USD buying helped limit any meaningful slide for the pair.

The USD/JPY pair extended its sideways consolidative price action and remained confined in a narrow trading band, just above mid-107.00s.

The pair has been oscillating in 70-80 pips over the past one week or so and struggled for a firm near-term direction as investors seemed to wait for a fresh catalyst before placing any aggressive bets.

The pair did get a goodish intraday lift on Thursday after reports indicated that the Bank of Japan (BoJ) was planning to remove the bond-buying limit, albeit failed to capitalize on the move beyond the 108.00 mark.

Meanwhile, the latest optimism over additional $484 billion US economic package turned out to be short-lived amid indications that Gilead Sciences' antiviral drug remdesivier failed to help severely ill COVID-19 patients in its first clinical trial.

This was evident from a weaker trading sentiment surrounding the global equity markets, which underpinned the Japanese yen's perceived safe-haven demand and turned out to be one of the key factors capping the major.

On the other hand, uncertainty over the severity of the economic damage from the coronavirus pandemic continued benefitting the US dollar's status as the global reserve currency and helped limit any meaningful downside for the pair.

Hence, it will be prudent to wait for a convincing break through the mentioned trading range to confirm the pair's near-term trajectory. A  sustained strength above the 108.00-10 region might be seen as a fresh trigger for bullish traders.

Moving ahead, market participants now look forward to the release of the US Durable Goods Orders, which might influence the USD price dynamics and produce some meaningful trading opportunities later during the early North-American session.

Technical levels to watch

USD/JPY

Overview
Today last price 107.7
Today Daily Change 0.10
Today Daily Change % 0.09
Today daily open 107.6
 
Trends
Daily SMA20 107.97
Daily SMA50 108.38
Daily SMA100 108.85
Daily SMA200 108.33
 
Levels
Previous Daily High 108.04
Previous Daily Low 107.35
Previous Weekly High 108.52
Previous Weekly Low 106.93
Previous Monthly High 111.72
Previous Monthly Low 101.18
Daily Fibonacci 38.2% 107.61
Daily Fibonacci 61.8% 107.78
Daily Pivot Point S1 107.28
Daily Pivot Point S2 106.97
Daily Pivot Point S3 106.59
Daily Pivot Point R1 107.98
Daily Pivot Point R2 108.36
Daily Pivot Point R3 108.68

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh two-month highs amid dollar weakness

EUR/USD has hit new two-month highs above 1.1940 as the dollar resumes its decline. Optimism about the US transition and covid vaccines is weighing on the safe-haven dollar. 

EUR/USD News

GBP/USD falls toward 1.33 amid Brexit acrimony

GBP/USD is falling toward 1.33 as both the EU and the UK are busy blaming each other for an impasse in Brexit talks. The thorny issues remain fisheries, governance and setting a level playing field.

GBP/USD News

XAU/USD attempting to bounce up from $1,775 low

Gold futures accelerated heir downtrend from last week highs near $1,900, breaking below the 200-day SMA, at $1,800 area, to hit its lowest prices in nearly five months, at $1,775.

Gold news

Dollar offered ahead of the weekend

Equities are finishing the week on a firm tone, while the US dollar remains heavy. In the Asia Pacific, only Australia and India did not end the week on a firm note.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures