USD/JPY jumps to 108.60, retreats slightly as Wall Street suffers losses

Sudden USD demand in the early NA session lifts the pair.
Wall Street opens in red to cap the pair's gains.
US 10-year T-bond yield drops more than 1.5%.

Eren Sengezer FXStreet

The USD/JPY pair gained traction and added more than 50 pips in the early NA session to touch a fresh daily high at 108.60. With risk-aversion taking control of the price action, the pair eased from its highs and was last seen trading at 108.45, up 0.05% on the day.

The US Dollar Index, which hasn't reacted to today's inflation data, met a strong buying wave and rose to a fresh two-day high of 95.76. Although there were no clear catalysts behind the USD's upsurge, reports of Turkish troops moving into the Syrian border seems to have triggered a flight-to-safety and boosted the demand for the greenback. At the moment, the DXY is up 0.1% on the day at 95.65. Earlier today, the data published by the U.S. Bureau of Labor Statistics showed that the annual core CPI in December stayed unchanged at 2.2% to match analysts' estimates.

Despite the USD strength, however, the risk-off mood as reflected by a 1.6% fall in the 10-year T-bond yield and a fall in major equity indexes also allowed the JPY to stay resilient.

With no other macroeconomic data releases to watch in the remainder of the day, markets' risk perception is likely to continue to drive the pair's price action.

Technical levels to consider

USD/JPY

Overview:
    Today Last Price: 108.44
    Today Daily change: -4.0 pips
    Today Daily change %: -0.0369%
    Today Daily Open: 108.48
Trends:
    Previous Daily SMA20: 110.27
    Previous Daily SMA50: 112.09
    Previous Daily SMA100: 112.2
    Previous Daily SMA200: 111.13
Levels:
    Previous Daily High: 108.5
    Previous Daily Low: 107.77
    Previous Weekly High: 110.48
    Previous Weekly Low: 104.75
    Previous Monthly High: 113.83
    Previous Monthly Low: 109.55
    Previous Daily Fibonacci 38.2%: 108.22
    Previous Daily Fibonacci 61.8%: 108.05
    Previous Daily Pivot Point S1: 108
    Previous Daily Pivot Point S2: 107.52
    Previous Daily Pivot Point S3: 107.28
    Previous Daily Pivot Point R1: 108.73
    Previous Daily Pivot Point R2: 108.97
    Previous Daily Pivot Point R3: 109.45

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD weakens toward 1.1600 as firm US data revives the US Dollar

The EUR/USD edged lower on Thursday, down some 0.21% as market sentiment remains risk averse due to the ongoing conflict in the Middle East. This and solid US economic data pushed the pair lower towards the 1.1600 figure ahead of Friday’s session.

GBP/USD drifts lower heading into NFP range

GBP/USD edged lower by 0.2% on Thursday, settling close to 1.3350 in a strained trading session that kept the pair pinned near three-month lows. Price briefly recovered earlier in the day on reports that Iran had indirectly signaled openness to talks with the CIA, but the bounce faded as Israeli officials reportedly advised Washington to disregard the overture.

Gold slumps below $5,100 as US Dollar gains

Gold price tumbles to near $5,085 during the early Asian session on Friday. The precious metal loses ground amid a stronger US Dollar. The US employment report for February will take center stage later on Friday.

NYSE parent Intercontinental Exchange partners with OKX, invests at a $25B valuation

OKX announced an investment from Intercontinental Exchange, raising its valuation to $25 billion, alongside a partnership to expand regulated crypto futures and tokenized equity offerings globally.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.

Ripple tests recovery strength amid steady ETF inflows, growing retail interest

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.