USD/JPY Price Analysis: Retreats from weekly-tops to 115.40s amid a light calendar

Broad US dollar weakness across the board weighed on the USD/JPY pair.
Falling US Treasury yields and demand for riskier assets keep the USD/JPY subdued.
USD/JPY Technical Outlook: Remains upward biased ahead of the US CPI for January.

Christian Borjon Valencia FXStreet

On Wednesday, the USD/JPY retreats from weekly highs ahead of the release of US inflation figures, alongside the slip of US Treasury yields. At the time of writing, the USD/JPY is trading at 115.44, down 0.08%.

Financial markets mood is positive, as shown by European and US equity indices printing gains. The US 10-year Treasury yield is dipping three basis points, to sit at 1.925%, while the US Dollar Index drops 0.20%, currently at 95.44.

USD/JPY Price Forecast: Technical outlook

In the overnight session for North American traders, the pair reached a daily high at 115.68, followed by a drop to the downslope one-month-old resistance/support trendline that passes around the 115.25-35 area. Even though the USD/JPY retreated to the abovementioned trendline, the pair remained above it, confirming the upward bias.

That said, the USD/JPY first resistance would be 116.00. Breach of the latter could pave the way for further gains and expose a 24-year-old downslope trendline drawn from August 1998, swing highs that pass around 117.00. An upward break would expose the January 2017 swing high at 118.61.

USD/JPY

Overview
Today last price	115.42
Today Daily Change	-0.12
Today Daily Change %	-0.10
Today daily open	115.54

Trends
Daily SMA20	114.62
Daily SMA50	114.45
Daily SMA100	113.84
Daily SMA200	111.85

Levels
Previous Daily High	115.63
Previous Daily Low	115.06
Previous Weekly High	115.59
Previous Weekly Low	114.16
Previous Monthly High	116.35
Previous Monthly Low	113.47
Daily Fibonacci 38.2%	115.41
Daily Fibonacci 61.8%	115.27
Daily Pivot Point S1	115.19
Daily Pivot Point S2	114.84
Daily Pivot Point S3	114.62
Daily Pivot Point R1	115.76
Daily Pivot Point R2	115.98
Daily Pivot Point R3	116.34

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.

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