USD/JPY recaptures 113.50 as S&P 500 futures open higher

USD/JPY regains 113.50 amid improving market mood.
US dollar consolidates post-inflation losses, with eyes on the Fed.
Impending bear cross and bearish RSI to limit USD/JPY’s advances.

Dhwani Mehta FXStreet

USD/JPY is trading better bid on the Tokyo open, having regained 113.50, finding support from an improvement in the market sentiment.

The positive open on the S&P 500 futures helps the bulls recover some ground in early dealings after a flat close on Friday.

The downbeat Japanese Tankan Large Manufacturing Index for the fourth quarter weighs on the yen, collaborating with the upside in the major.

The in-line with expectations US inflation data on Friday poured cold water on aggressive Fed rate hike expectations, which weighed on the Treasury yields alongside the US dollar, pressurizing USD/JPY towards 113.00.

On the other hand, the record rally in the US stocks amid easing fears over the new Omicron covid variant cushioned the downside in the spot.

All eyes remain on the Fed monetary policy decision for fresh hints on a potential 2022 rate hike, which will eventually impact the yields and the USD/JPY pair.

In the meantime, the Omicron updates and broader market sentiment will lead the way.

USD/JPY: Technical levels to consider

USD/JPY

Overview
Today last price	113.51
Today Daily Change	0.05
Today Daily Change %	0.04
Today daily open	113.42

Trends
Daily SMA20	113.91
Daily SMA50	113.61
Daily SMA100	111.81
Daily SMA200	110.67

Levels
Previous Daily High	113.79
Previous Daily Low	113.22
Previous Weekly High	113.95
Previous Weekly Low	112.74
Previous Monthly High	115.52
Previous Monthly Low	112.53
Daily Fibonacci 38.2%	113.44
Daily Fibonacci 61.8%	113.57
Daily Pivot Point S1	113.17
Daily Pivot Point S2	112.91
Daily Pivot Point S3	112.6
Daily Pivot Point R1	113.73
Daily Pivot Point R2	114.04
Daily Pivot Point R3	114.3

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD bulls seem hesitant as Hormuz ship attack supports safe-haven USD

The GBP/USD pair sticks to a positive bias for the second straight day, albeit it remains below the previous day's swing high and trades just below the 1.3200 mark during the Asian session on Friday. Furthermore, the fundamental backdrop warrants caution before positioning for any meaningful recovery from November 2025 lows, around the 1.3140 region, touched on Wednesday.

EUR/USD softens toward 13‑month low near 1.1350 as rising US PCE inflation lifts US Dollar

The EUR/USD pair loses ground to around 1.1365 during the early Asian trading hours on Friday. The major remains near a 13-month low as market expectations for US interest rate hikes have risen. Traders brace for the release of the Michigan Consumer Sentiment Index report, which will be released later on Friday.

Gold returns to the red near $4,000 as Hormuz risks revive USD demand

Gold drops back to near $4,000 in Asia on Friday as geopolitical risks stemming from an attack on a cargo vessel in the Strait of Hormuz bolster the US Dollar. The commodity remains on track to record losses for the fourth consecutive week.

Bitcoin briefly hits $58K as short-term holder weakness deepens, macro conditions trigger liquidations

Bitcoin fell briefly toward the $58,000 level on Thursday as mounting macroeconomic uncertainty, weakening short-term investor conviction and widespread liquidations intensified selling pressure across crypto.

Micron prints perfect, and now the chart has to answer

Memory’s biggest name just delivered the cleanest quarter of its life, and the most interesting thing about it is that the stock isn’t sure what to do with it. Micron closed out fiscal Q3 with revenue of $41.5 billion, up 346% on the year, a fifth straight record. Gross margin came in at 84.9%, up from 39% the same quarter a year ago. Earnings landed at $25.11 against a Street sitting near $20.49.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.