USD/JPY steadies near 109.80, looks to add more than 100 pips for the week


  • USD/JPY remains on track to snap four-day winning streak.
  • US Dollar Index extends rally to 98.70 on Friday.
  • 10-year US Treasury bond yield erases more than 3%.

The USD/JPY pair is trading in the negative territory on Friday as the sour market mood helps the JPY stay strong against the USD. As of writing, the pair was down 0.17% on the day at 109.80. Despite today's poor performance, however, the pair remains on track to close the week nearly 140 pips higher.

The 10-year US Treasury bond yield is down 3.5% on Friday as the relief rally that started earlier in the week seems to be fading away amid a lack of positive developments surrounding the coronavirus outbreak. Reflecting the flight-to-safety, Wall Street's main indexes are trading with modest losses.

USD capitalizes on jobs data

On the other hand, the broad-based USD strength is limiting the pair's losses. The data published by the US Bureau of Labor Statistics on Friday revealed that Nonfarm Payrolls (NFP) in January rose by 225,000 to beat the market expectation of 160,000. Furthermore, the annual wage inflation, as measured by the Average Hourly Earnings, edged higher to 3.1% from 3%.

Commenting on the market reaction to the NFP report, “Markets reacted with lower longer-term bond yields and falling equities, which seems a bit strange given the strong labour market report but we still doubt that this labour market report has led to much disappointment,” said analysts at Nordea.

Boosted by the upbeat data, the US Dollar Index, which tracks the USD's performance against a basket of six major currencies, advanced to its highest level since early October at 98.70 and was last up 0.22% on the day at 98.68.

Technical levels to watch for

USD/JPY

Overview
Today last price 109.79
Today Daily Change -0.20
Today Daily Change % -0.18
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

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD retreats below 1.1300 area as NFP-inspired dollar weakness fades

EUR/USD jumped to a daily high of 1.1333 with the initial market reaction to the disappointing November Nonfarm Payrolls data but quickly returned below 1.1300. Rising US Treasury bond yields seem to be helping the dollar stay resilient against its major rivals. 

EUR/USD News

GBP/USDdrops to 1.3250 area as dollar regains strength

GBP/USD spiked above 1.3300 in the early American session with the initial market reaction to the gloomy US November jobs report. However, the greenback regathered strength on hawkish Fed commentary and forced the pair to turn south.

GBP/USD News

Gold struggles to capitalize on weak NFP data, holds near $1,770

Gold spiked to a daily high near $1,780 with the initial market reaction to the disappointing Nonfarm Payrolls data from the US but seems to be having a difficult time preserving its bullish momentum with the 10-year US T-bond yield staying resilient.

Gold News

The bull and the bear case for BTC

Bitcoin price saw a bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. Bitcoin is likely to experience massive volatility as the situation resolves over time. 

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures