- The Greenback is finding some limited pickup against the Japanese Yen in early trading.
- US inflation figures due at the end of the week will be the key for the week's action.
The USD/JPY is trading into 111.30 as Monday's Asian market session begins to wrap it up, and the US Dollar is seeing some mild lift from recent lows near the 111.00 technical level, and the economic calendar is slated to be a series of mid- and low-tier showings for the Dollar-Yen pairing until Friday's US CPI reading, a long way off as market sentiment decides which way to head for the new week.
Monday's watered-down calendar has little meaningful data to encourage volatility into the markets for the early week, though late in the day will be seeing Japan's y/y Overall Household Spending for July at 23:30 GMT, and is expected to come in at -1.6%, a disappointing showing but expected to improve over the previous reading of -3.9%.
Last week's Bank of Japan (BoJ) showing represented a significant re-dedication to easy monetary policy by Japan's central bank, and the BoJ reaffirmed that it is still miles off from engaging in any kind of tapering or easing off of the monetary policy pedal, though the BoJ did widen the barriers on Japan's 10-year government bonds, while also warning markets about the bank's intent to begin shifting some ETF purchases from the Nikkei 225 to the Tokyo Topix index, since the BoJ now owns a sizeable portion of Japan's leading index after years of hyper-easy policy and asset purchases.
USD/JPY Technical Analysis
The Dollar-Yen pairing is currently pulling back from a recent swing low at the tail-end of last week's action, though bullish action is likely to remain subdued as the USD/JPY remains off of one-month highs with US CPI figures due at the end of the week, and USD traders will be keeping an eye turned towards the next round of US inflation figures.
USD/JPY Chart, 15-Minute
| Spot rate: | 111.34 |
| Relative change: | 0.12% |
| High: | 111.35 |
| Low: | 111.12 |
| Trend: | Bullish pullback |
| Support 1: | 111.49 (38.2% Fibo retracement level) |
| Support 2: | 111.85 (Friday swing high) |
| Support 3: | 112.14 (previous week high) |
| Resistance 1: | 111.12 (current day low) |
| Resistance 2: | 110.73 (previous week low) |
| Resistance 3: | 1110.58 (July 26th low) |
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.