USD/JPY keeps looking for support, challenges 136.00

Japanese Yen among top performers as the US Dollar remains under pressure.
Greenback resumes slide after United States’ economic reports.
USD/JPY down more than 200 pips, but no signs of stabilization seen so far.

Matías Salord FXStreet

The USD/JPY printed a fresh three-month during Thursday’s American session, following the release of US economic data at 135.73. It then bounced modestly toward the 136.00 zone. It remains under pressure, with the US Dollar down across the board.

Easing inflation in the US hits the Dollar

On Wednesday, Federal Reserve Chairman Jerome Powell pointed toward a slowdown in rate hikes, as soon as December. His comments were no surprise but triggered a rally in stocks and in Treasuries. The US Dollar began a decline that is still going on.

Inflation data released on Thursday showed a slowdown, although still at elevated levels with the Core PCE at 5% (annual) in October down from the 5.2% of September. Personal income and Spiting rose 0.7% and 0.8% respectably. Continuing Jobless Claims rose for the seventh week in a row to the highest level since March.

The numbers did not help the Dollar and US yields held near monthly lows, supporting the Japanese Yen. Not even higher equity prices in Wall Street are offsetting the strength of the yen.

Oversold?

The USD/JPY is on its way to the lowest daily close since mid-August, falling for the fourth consecutive day. The pair is challenging the 136.00 area and below the next support emerges at 135.50. Below a horizontal line is seen around 134.60 and then appears the 200-day Simple Moving Average at 134.40.

No signs of consolidation are seen at the moment. Despite oversold reading in many technical indicators, the Momentum remains extremely negative. A rebound back above 137.00 could alleviate the bearish pressure. Above 137.70 the outlook for the Dollar could improve (or become less negative).

Technical levels

USD/JPY

Overview
Today last price	136.15
Today Daily Change	-1.93
Today Daily Change %	-1.40
Today daily open	138.08

Trends
Daily SMA20	141.42
Daily SMA50	144.46
Daily SMA100	141.22
Daily SMA200	134.32

Levels
Previous Daily High	139.9
Previous Daily Low	137.65
Previous Weekly High	142.25
Previous Weekly Low	138.05
Previous Monthly High	148.82
Previous Monthly Low	137.5
Daily Fibonacci 38.2%	138.51
Daily Fibonacci 61.8%	139.04
Daily Pivot Point S1	137.19
Daily Pivot Point S2	136.3
Daily Pivot Point S3	134.95
Daily Pivot Point R1	139.44
Daily Pivot Point R2	140.79
Daily Pivot Point R3	141.68

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.