USD/JPY: on the bid through the Tokyo open, headed to 110?

Ross J Burland FXStreet

Currently, USD/JPY is trading at 109.29, down +0.09% on the day, having posted a daily high at 109.34 and low at 109.08.

Despite a poor CPI result, the dollar was mixed on Friday, yet equities held up well and despite continuing US-Nth Korea tensions as explained by analysts at Westpac. "US 10yr treasury yields fluctuated between 2.18% and 2.22% following the CPI data, but ended the session near the low. 2yr yields fell from 1.34% to 1.29%. Fed fund futures yields fell, pricing the chance of a December rate hike at around 35% (from 42%)," the analysts noted. For today, we had Japanese GDP for Q2 (preliminary) at 1.0% q/q vs. expected 0.6%. Now we turn to China's data in retails sales and IP ahead of a busy week with US retail sales and indeed the FOMC minutes. However for the time being, bulls are in control.

USD/JPY levels

USDJPY: Selling rallies towards 110.00

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, technical indicators have lost upward strength within negative territory and after correcting oversold conditions, whilst the price remains far below bearish moving averages. 108.80, June low, is the immediate support, with renewed selling pressure below it opening doors for a test of the year low at 108.12.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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