USD/JPY slumps to fresh daily lows near 109.70 ahead of NFP


  • 10-year US Treasury bond yield erases nearly 3% on Friday.
  • European stocks trade in red as risk appetite weakens.
  • Coming up: Nonfarm Payrolls (NFP) report from US.

The USD/JPY pair came under renewed selling pressure in the last hour and dropped to a fresh daily low of 109.67 pressured by risk-off flows. As of writing, the pair was trading at 109.72, erasing 0.25% on a daily basis.

The upbeat market sentiment made it difficult for the JPY to find demand during the first half of the week and allowed the pair to rise to its highest level in two weeks at 110.03. However, the sour mood on Friday seems to be weighing on the pair. Disappointing Industrial Production figures from Germany seems to have reminded investors of the fragile global economy. 

Major European equity indexes on Friday are losing between 0.3% and 0.6% and the 10-year US Treasury bond yield, which gained nearly 10% during the first half of the week, is losing 2.7% to reflect the flight-to-safety.

Focus shifts to US NFP data

In the meantime, the US Dollar Index is clinging to modest daily gains near the 98.60 mark ahead of the key Nonfarm Payrolls (NFO) data.

Previewing the NFP report, “the main event of the day is the US jobs report for January, which we expect to continue to paint an upbeat picture of the US labour market situation and we look for growth in non-farm payrolls of 175,000 and wage growth of 3.0% y/y,” said Danske Bank analysts.

US NFP Preview: 6 Major Banks expectations for January payrolls report.

Technical levels to watch for

USD/JPY

Overview
Today last price 109.76
Today Daily Change -0.23
Today Daily Change % -0.21
Today daily open 109.99
 
Trends
Daily SMA20 109.53
Daily SMA50 109.23
Daily SMA100 108.8
Daily SMA200 108.39
 
Levels
Previous Daily High 110
Previous Daily Low 109.74
Previous Weekly High 109.28
Previous Weekly Low 108.31
Previous Monthly High 110.29
Previous Monthly Low 107.65
Daily Fibonacci 38.2% 109.9
Daily Fibonacci 61.8% 109.84
Daily Pivot Point S1 109.82
Daily Pivot Point S2 109.66
Daily Pivot Point S3 109.57
Daily Pivot Point R1 110.08
Daily Pivot Point R2 110.17
Daily Pivot Point R3 110.34

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

GBP/USD extends recovery gains to near 1.3250, as BoE looms

GBP/USD extends recovery gains to near 1.3250, as BoE looms

GBP/USD extends the recovery to near 1.3200 in European trading on Thursday, having found buyers near 1.3150. A fresh US Dollar pullback and a rebound in risk sentiment offer support to the pair ahead of the BoE policy announcements. 

GBP/USD News
EUR/USD advances to 1.1150, focus shifts to ECB-speak

EUR/USD advances to 1.1150, focus shifts to ECB-speak

EUR/USD is well-bid near 1.1150 in the European session on Thursday. The pair is underpinned by the renewed US Dollar retreat and an upbeat mood. Traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed. 

EUR/USD News
Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness

Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness

Gold price regains positive traction following the previous day's pullback from the all-time peak and builds on its steady intraday ascent heading into the European session on Thursday. 

Gold News
BoE expected to keep interest rate unchanged at 5% as price pressures persist

BoE expected to keep interest rate unchanged at 5% as price pressures persist

After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.

Read more
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures