USD/JPY loses ground, still closes the week above 145.00

USD/JPY tallied a consecutive day of losses, but it is still poised for a weekly gain.
The JPY closes the week strong driven by hopes of a potential BoJ pivot after hot inflation figures from July.
The USD benefited on Friday on a negative market mood.

Patricio Martín FXStreet

In Friday’s session, the JPY was one of the top performers as it traded strongly against most of its rivals following the release of higher-than-expected inflation figures from July from Japan. On the other hand, the USD, measured by the DXY index, trades mild losses, after jumping to its highest level since mid-June, near 103.60.

Japan's recent National Consumer Price Index (CPI) for July surpassed forecasts, coming in at 3.3% YoY, outperforming the anticipated 2.5% and aligning with the previous reading. This unexpected boost has propelled the JPY to a position of strength against many of its counterparts. However, given the overall economic fragility in the local economic activity, the reported inflation might not align with the Bank of Japan's (BoJ) ideal conditions for a policy shift. Furthermore, the BoJ maintains a cautious stance as it closely monitors developments in China, refraining from adjusting to its accommodative approach.

On the US side, the Greenback benefited from risk-aversion due to the recent Chinese financial woes after the real state gigant Evergrande filed for bankruptcy protection in the US. In addition, the USD got a boost against its rivals during the week mainly because of the hawkish stance seen by the Federal Open Market Committee (FOMC) in Wednesday’s minutes from the July meeting, which saw participants not shutting the door for another hike in this cycle. Focus now shifts to next week’s S&P Global PMI indexes.

USD/JPY Levels to watch

The daily chart shows bullish exhaustion for USD/JPY, contributing to a neutral, bearish technical stance. Both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) exhibit indications of fading momentum. The RSI shows a downward trend above its midline, suggesting diminishing bullish strength, while the MACD lays out decreasing green bars. In addition, the pair is above the 20,100,200-day Simple Moving Averages (SMAs) on the bigger picture, implying that the bulls are in command over the sellers on a broader scale.

Support levels: 145.00, 144.00, 143.20 (20-day SMA).

Resistance levels: 145.50, 146.00, 146.30.

USD/JPY Daily chart

USD/JPY

Overview
Today last price	145.21
Today Daily Change	-0.63
Today Daily Change %	-0.43
Today daily open	145.84

Trends
Daily SMA20	143.05
Daily SMA50	142.2
Daily SMA100	139.06
Daily SMA200	136.5

Levels
Previous Daily High	146.56
Previous Daily Low	145.62
Previous Weekly High	145
Previous Weekly Low	141.51
Previous Monthly High	144.91
Previous Monthly Low	137.24
Daily Fibonacci 38.2%	145.98
Daily Fibonacci 61.8%	146.2
Daily Pivot Point S1	145.45
Daily Pivot Point S2	145.06
Daily Pivot Point S3	144.51
Daily Pivot Point R1	146.39
Daily Pivot Point R2	146.95
Daily Pivot Point R3	147.34

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD stays offered just above 1.1400

EUR/USD keeps the downtrend well in place for yet another day, challenging the 1.1400 contention zone on Tuesday. The continuation of the selling impulse in spot comes amid decent gains in the US Dollar, which continues to find support in the persistent effervescence surrounding the US-Iran crisis.

Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP extends recovery as on-chain activity grows

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.