- US Dollar recovers on Friday, ends week negative but not so weak.
- USD/JPY bounces but remains below critical resistance seen at 108.00/10.
The USD/JPY pair is about to end the week with modest losses after a strong recovery on Friday. A correction of the greenback across the board after Thursday’s sharp decline boosted the pair.
During the Asian session tested the weekly low at 107.20 but then turned to the upside. The US Dollar was the best performer on Friday, removing some of the bearish pressure. Comment’s from Fed’s officials reinforcing rate cut expectations weigh on the US Dollar.
The pair rose back above 107.50. It spiked to 107.95 during the American session following the reports that Iran Guards seized a British Oil tanker but quickly pulled back to 107.65/70, where it was trading near the end of the week.
Technical outlook
According to Valeria Bednarik, Chief Analysts at FXStreet, the weekly chart shows the pair developing far below all of its moving averages, and with the 20 SMA gaining bearish strength below the larger ones. “Technical indicators in the mentioned chart have extended their declines within negative levels, further supporting the negative case.”
She adds the daily chart shows USD/JPY stuck around the 23.6% retracement of its July’s decline. “The 20 DMA is flat at around 108.10, while the 100 and 200 DMA maintain their bearish slopes well above the shorter one.” The pair recovered on Friday but failed to regain the critical 108.00/10 technical area.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0700 ahead of US data
EUR/USD stays in a consolidation phase slightly below 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold manages to hold above $2,300
Gold struggles to stage a rebound following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% ahead of US data, not allowing XAU/USD to gain traction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.