USD/JPY Price Analysis: Holds above 150.00 ahead of the weekend

USD/JPY advances to 150.16, lifted by US inflation figures and positive consumer outlook.
Fed's Bostic and Daly call for a cautious stance on rate cuts, advocating patience.
Technical outlook suggests bullish potential for USD/JPY, eyeing targets beyond 151.00 with key supports in focus.

Christian Borjon Valencia FXStreet

The USD/JPY is set to finish the day and the week positively, with the major clinging above the 150.00 figure, posting daily gains of 0.16%, exchanging hands at 150.16.

Fundamentally speaking, Friday’s data suggests inflation in the United States (US) is stickier than expected, as shown by the latest Producer Price Index (PPI) report, with the headline and underlying PPI exceeding the consensus and the previous month’s reading. Despite this, the latest Consumer Sentiment report, showed Americans remain optimistic about the economic outlook, despite upward revising inflation expectations for one year.

Given this backdrop, Federal Reserve officials Bostic and Daly acknowledged the progress on inflation but remained cautious about providing a timetable for interest rate cuts. Both suggested that patience is required before the Fed begins its easing cycle.

From a technical standpoint, the USD/JPY is neutral to upward biased after peaking at around the 150.00-150-88 area following the release of US inflation figures. For a bullish continuation, buyers must lift the exchange rate above 151.00, followed by the November 13 high at 151.91, before challenging 152.00.

Conversely, if USD/JPY drops below 150.00, the first support would be the Tenkan-Sen at 149.25. The next support would be the Senkou Span A at 148.43, followed by the 148.00 figure. Downside risks emerge at the Kijun-Sen level at 147.62.

USD/JPY Price Action – Daily Chart

USD/JPY

Overview
Today last price	150.24
Today Daily Change	0.29
Today Daily Change %	0.19
Today daily open	149.95

Trends
Daily SMA20	148.44
Daily SMA50	145.73
Daily SMA100	147.55
Daily SMA200	145.29

Levels
Previous Daily High	150.63
Previous Daily Low	149.52
Previous Weekly High	149.58
Previous Weekly Low	147.63
Previous Monthly High	148.81
Previous Monthly Low	140.81
Daily Fibonacci 38.2%	149.95
Daily Fibonacci 61.8%	150.21
Daily Pivot Point S1	149.44
Daily Pivot Point S2	148.93
Daily Pivot Point S3	148.34
Daily Pivot Point R1	150.54
Daily Pivot Point R2	151.14
Daily Pivot Point R3	151.65

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

AUD/USD pulls back from monthly high but holds above 0.7000

AUD/USD retreats from the monthly high set earlier this Thursday, sliding back to 0.7000 during the Asian session as a further escalation of tensions in the Middle East undermines the risk-sensitive Aussie. However, recent hawkish comments from RBA officials could support the Australian Dollar. Furthermore, the prevailing US Dollar selling bias, despite Fed hike bets and geopolitical uncertainties, could limit losses for the pair.

USD/JPY declines to a one-week low; eyes trading range support near 157.50 on weaker USD

USD/JPY drops to a one-week low during Thursday’s Asian session, with bears now awaiting a break below multi-week range support near mid-157.00s before placing fresh bets amid a broadly weaker US Dollar. Despite bets for a December Fed rate hike and Middle East jitters, the recent decline in US bond yields keeps USD depressed near a three-week low. Moreover, hawkish BoJ expectations and intervention risks underpin the Japanese Yen, further weighing on the currency pair.

Gold weakens to near $4,110 amid broader strength in oil prices

Gold is down 1% to near $4,095 in the Asian trading session on Thursday on the back of fears that global inflation expectations could accelerate further due to heightened geopolitical tensions in the Middle East.

XRP and XLM recovery stalls below EMAs

Ripple (XRP) and Stellar (XLM) remain under pressure on Thursday as both struggle to sustain their recent recovery attempts. XRP trades below $1.36, while XLM slips beneath $0.183, as mixed derivatives metrics, weakening momentum indicators and heating market conditions suggest cautious market sentiment. Derivatives data shows weakening conditions for Ripple and Stellar.

The US Oil reserve hit a 44-year low. Now the barrels are coming back

Washington lent out a third of the Strategic Petroleum Reserve this year rather than selling it. The loans come due from now to 2029, and after the midterms, the reserve has nothing left to hold fuel prices down. The US Strategic Petroleum Reserve held 282.7 million barrels in the week to October 16, down another 300K, and lower than at any point since October 1982.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.