USD/JPY: Off intraday high near 104.00 on upbeat Japan Industrial Production, Retail Sales

  • USD/JPY trims early-Asian gains, drops for the fifth consecutive day.
  • Japan’s October month Retail Sales, Industrial Production prints upbeat results.
  • Trading sentiment stays upbeat over vaccine hopes, US politics.
  • China PMIs, risk catalysts to remain as the key drivers.

USD/JPY refreshes the intraday low to 104.05 as markets in Tokyo open for Monday’s trading. Although risk-on mood helped the buyers earlier in the day, the recent data releases from Japan recalled the bears while cheering a five-day losing streak.

Japan’s October month Retail Sales offered a surprise growth of 6.4% YoY versus market consensus of -7.7%. Further details suggest that the preliminary readings of October’s Industrial Production recovered from -14.5% forecast and -9.0% prior to -3.2% YoY.

Elsewhere, the market’s risk-tone remains positive as major coronavirus (COVID-19) vaccine developers are likely to get the regulatory approvals from the UK, Europe and the US. The same will fasten the process of delivery to the cure of the pandemic that has roiled 2020.

Also on the positive side are chatters concerning US President-elect Joe Biden’s team and their next steps, mainly surrounding the fiscal stimulus.

It should also be noted that the mixed signals relating to the Brexit deal also affect the risk catalysts while fears of the further increase in the covid numbers, until the vaccine hit the floor, offer an extra filter to the market optimism.

Against this backdrop, S&P 500 Futures stay mildly bid around the record highs marked in early November whereas Japan’s Nikkei 225 prints 0.40% gains to 26,752 by press time.

Although risk catalysts are likely to remain as the key drivers, China’s official activity data for November can offer an intermediate trade direction. Expectations favor a mild recovery in the headlines Manufacturing PMI but traders should remain cautious as the Aussie-China tussle can spoil the mood despite upbeat readings.

Technical analysis

Sustained trading below 21-day SMA, currently around 104.40, directs the USD/JPY prices towards a three-week-old ascending trend line, at 103.95 now.

Additional important levels

Today last price 104.09
Today Daily Change 0.03
Today Daily Change % 0.03%
Today daily open 104.06
Daily SMA20 104.43
Daily SMA50 104.92
Daily SMA100 105.5
Daily SMA200 106.59
Previous Daily High 104.29
Previous Daily Low 103.91
Previous Weekly High 104.76
Previous Weekly Low 103.68
Previous Monthly High 106.11
Previous Monthly Low 104.03
Daily Fibonacci 38.2% 104.05
Daily Fibonacci 61.8% 104.14
Daily Pivot Point S1 103.89
Daily Pivot Point S2 103.71
Daily Pivot Point S3 103.5
Daily Pivot Point R1 104.27
Daily Pivot Point R2 104.47
Daily Pivot Point R3 104.65



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

Latest Forex News

Editors’ Picks

GBP/USD retreats from new highs amid dollar strength

GBP/USD has fallen off the peak of 1.3719, the highest since 2018, amid fresh dollar strength. Optimism about the UK's vaccine campaign and lower cases boosted sterling earlier. The greenback awaiting Biden's first moves as President. 


EUR/USD falls toward 1.21 ahead of Biden´s inauguration

EUR/USD has been descending toward 1.21. President-elect Biden is inaugurated later in the day and hopes of stimulus are high after Treasury Secretary nominee Yellen's testimony. 


Gold: Bulls recapture 200-DMA ahead of Biden's inauguration

Gold prices are attempting to correct higher above 200-DMA. The metal cheers rising US inflation expectations amid hopes of a massive stimulus package under the incoming Biden administration. 

Gold news

Forex Today: Yellen's stimulus boosts sentiment ahead of Biden's inauguration, BOC, Bailey eyed

The market mood is cheerful with stocks and gold rising and the dollar retreating ahead of Biden's inauguration. Yellen has made the case for more stimulus, boosting sentiment. 

Read more

US Dollar Index extends the drop to the 90.30 area, focus on US politics

The US Dollar Index (DXY), which gauges the greenback vs. its main competitors, remains on the back footing so far this week and slips back to the 90.30/25 band.

US Dollar Index News