USD/JPY stable at 107.00 handle amid risk-on mood


  • The US dollar strengthened as risk appetite prevailed on Wall Street.
  • The USD/JPY is trying to stabilize at the 107.00 handle. 

The USD/JPY has traded mainly sideways in Tuesday’s trading. The bears tested last week’s open at 106.94 but were unable to close below it maintaining the pair supported at the 107.00 handle.

Earlier in the day, Fed’s Evans made some hawkish comments saying: “The U.S. Economy is firing on all cylinders” and “ the Fed can raise rates gradually without risk of inflation surge.” More details here.

Wednesday will see three Fed officials’ speeches throughout the day. 

The US dollar strengthened as investors decided to focus on the stellar corporate earnings on Wall Street. The three main indices, the S&P 500, the Dow Jones and the Nasdaq jumped higher on Tuesday breaking key technical levels. The US Dollar Index found a floor at 89.23 in the early European session and is now trading close to the 89.50 level. Supporting the buck is also John Williams, San Francisco Federal Reserve President, who earlier in the day in a speech said that he sees median interest rates in the US hovering between 3% and 4% by 2020. Further collaborating to USD strength were the better-than-expected US housing and industrial data released earlier. The market is temporarily putting aside worries of trade wars and potential Russian sanctions (those ones are for now on hold according to the latest news).

Further on, Japanese low-tier macroeconomic data is expected at 23:50 GMT with imports/exports numbers and the Merchandise Trade Balance which are not considered market movers.

USD/JPY 4-hour chart

Immediate support lies at 106.87 (low of the day) and then at 106.61 swing low while resistance is seen initially at 107.41 swing high and then at 107.79 swing high.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1130 in dull session, ECB eyed

The EUR/USD pair has recovered from a fresh weekly low of 1.1105 but remains depressed. Market players now waiting for ECB’s monetary policy, the last one presided by Mario Draghi.

EUR/USD News

GBP/USD attempting to recover after parliament slowed down the Brexit process

GBP/USD is moving up toward 1.29, trying to recover after parliament rejected the fast-track process that PM Johnson wanted for approving his Brexit deal. An extension to Article 50 and elections are on the cards.

GBP/USD News

USD/JPY struggles below mid-108.00s, over one-week lows

The Greenback held weaker against its Japanese counterpart, with the USD/JPY pair struggling below mid-108.00s, or over one-week lows set earlier this Wednesday.

USD/JPY News

Gold climbs higher toward $1,500 on risk-aversion

The XAU/USD pair gained traction on Wednesday and rose toward the upper-limit of its two-week-old range near the critical $1,500 handle supported by risk-off flows.

Gold News

If you are a "Hodler" here is where you could find support in Bitcoin

Today the price of Bitcoin fell and the price is now headed toward the 7,310.00 support used as a resistance zone on the week of the 3rd September 2018.

Read more

Forex MAJORS

Cryptocurrencies

Signatures