• 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.

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

 

 

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