• Yen recedes as trade tensions take a breather.
  • Thin data and a lack of developments leaves the USD/JPY primed for a shakeup.

The USD/JPY is trading just beneath 111.50 for Tuesday after bounding higher in the early day's action.

Asia session traders pushed the Yen down as risk sentiment recovered after markets grew tired of being pushed down by trade war angst, and the Dollar-Yen pairing is bumping higher heading into European markets.

US and Japanese economic data are both light in the upcoming sessions, but markets will be bracing for tariff headlines in the coming days ahead of Friday's US CPI reading.

USD/JPY levels to watch

With little headlines or economic developments on the radar today, Tuesday's bullish push could have been premature as major pairs remain biased towards the middle, as noted by FXStreet's own Valeria Bednarik: "the technical picture is neutral, as the pair has been ranging pretty much since mid-August. The short-term picture is neutral-to-bullish, as, in the 4 hours chart, the price continues moving around horizontal and parallel 100 and 200 SMA, both indicating the absence of a clear directional trend, while technical indicators entered positive ground, the Momentum heading north but the RSI now flat around 51. The pair would need to clear the resistance area between 111.40 and 111.50 to be able to extend its gains up to 112.14, August high and a key breakout point."

Support levels: 110.90 110.65 110.25   

Resistance levels: 111.45 111.80 112.15

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

Editors’ Picks

EUR/USD looks weak after rejection above 1.1100

EUR/USD is sidelined near 1.1080 ahead of the London open. Single currency failed to keep gains above 1.11 on Tuesday despite upbeat German data. The sentiment is quite bearish and a deeper drop to the 100-day average could be in the offing.


GBP/USD modestly flat around 1.3050 amid Brexit concerns, USD strength

GBP/USD holds onto the recovery despite looming Brexit uncertainty and broad-based US dollar strength. EU is likely to offer a tough Brexit deal that increases the odds of harsh departure.


Bank of Canada Rate Decision Preview: Rewards of Economic patience

Bank of Canada is forecast to leave the overnight rate at 1.75% where is has been since it was increased 25 basis points on October 24th 2018.   The bank makes rate policy decisions at eight fixed date meeting a year. The next is March 4th.

Read more

Gold remains under pressure around $1,551 as US dollar keeps the gains

Gold bounces off the intra-day low of $1,550.40, flashed a few minutes back, to $1,551.30 by the press time of the pre-European session on Wednesday. In doing so, the safe-haven ignores the geopolitical risks emanating from China.

Gold News

USD/JPY rises above 110.00, potential head-and-shoulders on 1H

Risk reset in stocks is boding well for USD/JPY.  The pair may be forming a head-and-shoulders pattern on the hourly chart. The bulls are not out of the woods yet and a break above 110.12 is needed to invalidate lower highs setup on the hourly chart.