• The USD/JPY is losing 0.23% amid a mixed-market mood in the week.
  • The DXY approaches the 96.00 figure despite increasing tensions in Ukraine.
  • Fed’s Bullard and Mester favor hiking rates at a faster pace.
  • USD/JPY Technical Outlook: Upward biased, but a daily close under the 50-DMA, would open the door towards 114.00.

The USD/JPY reversed the curse as the weekend approached amid a mixed market sentiment, driven by Russia/Ukraine headlines crossing the wires, down 0.23% in the week. At the time of writing, the USD/JPY is trading at 115.00.

The market sentiment is downbeat. Europan indices record losses, while the US equity futures point that Wall Street would open negatively. Meanwhile, the US Dollar Index, a gauge of the greenback’s value against a basket of its rivals, grinds up 0.13%, sits as 95.920. Contrarily, the US 10-year T-note yield drops three basis points, eyeing to close the week under the 2% threshold, at 1.939%, putting a lid on the USD/JPY.

Russia/Ukraine update

Developments in the Russia/Ukraine conflict fluctuate between de-escalation/escalation mode in the last couple of hours. First, US Secretary Blinken proposed a meeting with Russian Foreign Minister Lavrov late in the week. However, it is conditioned to Russia not invading Ukraine, as reported by the US State Department. Meanwhile, clashes in East Ukraine continued on Friday, as the OSCE has recorded 80 ceasefire violations, while Russian President Putin will oversee strategic drills on Saturday.

Fed speaking, Bullard and Mester crossed the wires

On Thursday, St . Louis Fed President James Bullard reiterated its intentions to “convince” the board that 100 bps are needed by July 1, while noting that it could be necessary that the US central bank has to go beyond neutral rates. Later on the day, Cleveland’s Fed Loretta Mester said that she favors a March hike and would be “appropriate” to hike the Federal Funds Rate (FFR) faster than in the 2008 financial crisis.

A light US economic docket will feature Existing Home Sales, Consumer Board Leading Index, and Fed speaking as Evans, Williams, and Brainard will cross the wires.

USD/JPY Price Forecast: Technical outlook

The USD/JPY is retreating from daily highs, but the 50-day moving average (DMA) at 114.77 stopped the fall. Nevertheless, the pair is upward biased, but downside risks remain. The outcome of a daily close under the 50-DMA could send the USD/JPY tumbling towards February 2 low at 114.14.

Otherwise, the path of least resistance is upwards. The USD/JPY first resistance would be February 16 daily low at 115.35, previous support-turned-resistance. Breach of the latter would expose February 15 daily high at 115.86, followed by a challenge of the YTD high at 116.35.

USD/JPY

Overview
Today last price 115
Today Daily Change 0.09
Today Daily Change % 0.08
Today daily open 114.91
 
Trends
Daily SMA20 115.01
Daily SMA50 114.76
Daily SMA100 114.16
Daily SMA200 112.07
 
Levels
Previous Daily High 115.54
Previous Daily Low 114.85
Previous Weekly High 116.34
Previous Weekly Low 114.91
Previous Monthly High 116.35
Previous Monthly Low 113.47
Daily Fibonacci 38.2% 115.11
Daily Fibonacci 61.8% 115.28
Daily Pivot Point S1 114.66
Daily Pivot Point S2 114.41
Daily Pivot Point S3 113.97
Daily Pivot Point R1 115.35
Daily Pivot Point R2 115.79
Daily Pivot Point R3 116.05

 

 

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

AUD/USD dribbles around key support below 0.6900, China PMI, US PCE inflation eyed

AUD/USD dribbles around key support below 0.6900, China PMI, US PCE inflation eyed

AUD/USD holds onto the previous day’s bounce off important support while taking rounds to 0.6870 during Thursday’s inactive early Asian session. In addition to defending the corrective pullback, the Aussie pair also portrays the market’s anxiety ahead of important data from a major customer China.

AUD/USD News

USD/JPY advances towards 137.00 amid firmer DXY and mixed Japan data

USD/JPY advances towards 137.00 amid firmer DXY and mixed Japan data

The USD/JPY pair is aiming to recapture its fresh 23-year high around 137.00 as the DXY has strengthened on hawkish commentary from Fed chair Jerome Powell. Japan’s mixed Industrial production data has weakened the yen bulls further.

USD/JPY News

Gold stays on the way to $1,807 support ahead of US PCE inflation

Gold stays on the way to $1,807 support ahead of US PCE inflation

Gold Price struggles to defend the previous day’s bounce off short-term key support during Thursday’s Asian session. In doing so, the yellow metal remains indecisive around $1,818. The yellow metal dropped to the lowest levels in two weeks the previous day.

Gold News

Polygon's MATIC price signals hard times to come, here's why

Polygon's MATIC price signals hard times to come, here's why
Polygon’s MATIC price signals bears have re-entered the market. If the profit-taking continues, a cataclysmic fall could occur to breach the $0.31 low
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