• USD/JPY takes offers near 113.85 during the three-day downtrend.
  • BOJ Minutes cites inflation fears, one member suggested Fed rate hike could cause yen rise.
  • Market sentiment sours amid pre-Fed cautious after Yellen’s comments, Japan inflation came in mixed for December.
  • Yields, equities remain pressured amid a light calendar day.

USD/JPY remains on the back foot for the third consecutive day, down 0.30% intraday around 113.85 as Tokyo opens for Friday. The yen pair portrays the market’s risk aversion while tracking downbeat Treasury yields and equities.

Fears of the US Federal Reserve’s (Fed) hawkish appearance in the next week’s monetary policy meeting seem to weigh on the USD/JPY prices the most. On the same line are the recently downbeat signals from the Bank of Japan (BOJ) monetary policy meeting minutes as well as mixed inflation data from Japan.

Expectations of the Fed’s signal to rate hike grew stronger after US Treasury Secretary Janet Yellen said in a CNBC interview, “Inflation rose by more than most economists, including me, expected and of course, it's our responsibility with the Fed to address that. And we will.”

Japan’s National Consumer Price Index (CPI) for December rose past 0.6% prior to 0.8% YoY while National CPI ex-Fresh Food reprinted 0.5% YoY level versus 0.6% expected.

It’s worth noting that indecision over the US-China ties also weighed the market’s sentiment and the USD/JPY prices. That said, the South China Morning Post (SCMP) signaled that China’s Yang Jiechi and US national security adviser Jake Sullivan are up for a crunch meeting but no date was indicated.

Against this backdrop, the US 10-year Treasury yields posted a second consecutive daily loss, down four basis points to 1.79% at the latest, whereas the S&P 500 Future dropped 0.30% intraday by the press time.

That said, the USD/JPY prices cheered mixed data as an excuse to curtain bullish bets on the greenback and the Treasury yields. The US Jobless Claims jumped to the highest since late October and the Philadelphia Fed Manufacturing Survey details also improved for January.

Looking forward, a lack of major data/events can restrict short-term USD/JPY moves but the bearish bias remains intact amid downbeat Treasury yields and pre-Fed fears.

Technical analysis

A clear downside break of a three-month-old rising trend line, near 114.15 by the press time, directs USD/JPY prices towards the 100-DMA level surrounding 113.25.

Additional important levels

Overview
Today last price 113.91
Today Daily Change -0.29
Today Daily Change % -0.25%
Today daily open 114.2
 
Trends
Daily SMA20 114.97
Daily SMA50 114.33
Daily SMA100 113.2
Daily SMA200 111.45
 
Levels
Previous Daily High 114.55
Previous Daily Low 113.96
Previous Weekly High 115.85
Previous Weekly Low 113.48
Previous Monthly High 115.21
Previous Monthly Low 112.56
Daily Fibonacci 38.2% 114.19
Daily Fibonacci 61.8% 114.32
Daily Pivot Point S1 113.93
Daily Pivot Point S2 113.65
Daily Pivot Point S3 113.34
Daily Pivot Point R1 114.51
Daily Pivot Point R2 114.82
Daily Pivot Point R3 115.1

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.

EUR/USD News

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 

GBP/USD News

Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures