- US dollar rises across the board on Friday, extends weekly gains versus yen.
- Higher US yields and a rally in Wall Street support the upside in USD/JPY.
The USD/JPY rose on Friday for the fourth-day in-a-row, extending weekly gains to more than a hundred pips. During the American session peaked at 109.88, the highest level since December 31. It is about to end the week on a strong note, trading around 109.70/75, 125 pips above the level it had seven days ago.
The greenback continued to be supported by an improvement in risk appetite and also by higher US yields. The 10-year climbed over the week from 2.69% to 2.78%, the highest in three weeks.
Week ahead
A critical event in the US continues to be the federal government shutdown. Negotiations next week are likely to take place. The shutdown implicates that economic data from the Bureau of Economic Analysis and the Census Bureau will be postponed. Fears about the impact on the economy will continue to rise. Regarding data, the economic calendar includes the PMI. The Federal Reserve enters the blackout period toward the January 29/30 meeting.
In Japan, the Bank of Japan will meet on Wednesday. “We expect the BoJ to keep its ‘QQE with yield curve control’ policy unchanged and we expect it to move steadily forward with the current policy for the near future. That said, the meeting has become more interesting following the recent weakening global market sentiment and lower oil prices”, wrote Danske Bank analysts. They consider that the BoJ is likely to revise down its inflation forecast in the quarterly outlook report published along with the policy statement.
Levels to watch
USD/JPY
Overview:
Today Last Price: 109.79
Today Daily change: 0.55 pips
Today Daily change %: 0.50%
Today Daily Open: 109.24
Trends:
Daily SMA20: 109.33
Daily SMA50: 111.62
Daily SMA100: 112.07
Daily SMA200: 111.18
Levels:
Previous Daily High: 109.41
Previous Daily Low: 108.68
Previous Weekly High: 109.09
Previous Weekly Low: 107.77
Previous Monthly High: 113.83
Previous Monthly Low: 109.55
Daily Fibonacci 38.2%: 109.13
Daily Fibonacci 61.8%: 108.96
Daily Pivot Point S1: 108.81
Daily Pivot Point S2: 108.38
Daily Pivot Point S3: 108.08
Daily Pivot Point R1: 109.54
Daily Pivot Point R2: 109.84
Daily Pivot Point R3: 110.27
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.