USD/JPY struggles to keep 106.00 even as Nikkei 225 flashes mild gains

  • USD/JPY eases from intraday top of 106.16 amid mixed clues.
  • Politico’s signal that Iran is plotting to kill US Ambassador joins risk-negative news from New Zealand to weigh on market sentiment.
  • Vaccine hopes, TikTok story and Brexit confuse traders during the light-calendar morning.
  • Japan’s Industrial Production in the spotlight for now, risk factors remain as the key.

USD/JPY retraces gains to 106.13 as traders in Tokyo capitalize on the early-Monday move. The yen major marked losses during the last week but portrays sluggish moves off-late. The reason could be traced from non-uniform risk signals and a lack of major data/events.

Vaccine news confronts virus woes…

Not only AstraZeneca’s restart of the coronavirus (COVID-19) trials but news that Pfizer is also pitching for its vaccine sale before the year-end added to the market optimism during the week’s start.

Even so, New Zealand’s extension of lockdown restrictions, at least till September 21, with stricter conditions in Auckland, challenges the market’s mood. Also on the negative side could be Politico’s piece suggesting Iran’s planning to take revenge for Qassem Soleimani.

It should, additionally, be noted that the fears of a hard Brexit grow as the UK offers discounts to Japanese while talking trade, in terms of accepting stiff rules, ahead of British diplomats’ visit to Brussels.

Earlier during the day, Japanese Chief Secretary and front-runner for the country’s leadership race Yoshihide Suga said that there is no limit to the bonds a government can issue. This strengthens the odds of further easy money policy in Japan.

Talking about the data, Japan’s Reuters Tankan details suggest the Manufacturing gauge recovered from -33 to -29 in September, the best in six-months. On the other hand, the Services index also bounced off -23 to -18 during the reported period.

Against this backdrop, S&P 500 Futures rise 0.90% while Japan’s Nikkei 225 add 0.50% by the press time. Though, the US 10-year treasury yields struggle around 0.66% as we write.

Moving on, Japan’s July month Industrial Production, expected to remain unchanged at -16.1%, can offer an immediate market reaction. However, traders may pay a little more attention to the risk news for further direction.

Technical analysis

A 30-pip area between 21-day and 50-day SMA below 106.30 keeps the pair’s short-term moves confined.

Additional important levels

Today last price 1.3178
Today Daily Change 0.0000
Today Daily Change % 0.00%
Today daily open 1.3178
Daily SMA20 1.3146
Daily SMA50 1.3317
Daily SMA100 1.3539
Daily SMA200 1.3521
Previous Daily High 1.3208
Previous Daily Low 1.3151
Previous Weekly High 1.326
Previous Weekly Low 1.3053
Previous Monthly High 1.3451
Previous Monthly Low 1.302
Daily Fibonacci 38.2% 1.3173
Daily Fibonacci 61.8% 1.3186
Daily Pivot Point S1 1.315
Daily Pivot Point S2 1.3122
Daily Pivot Point S3 1.3094
Daily Pivot Point R1 1.3207
Daily Pivot Point R2 1.3236
Daily Pivot Point R3 1.3264



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: Bears stepping in as US yields melt

EUR/USD is slightly firmer on the day trading around the 1.16 figure after rising from a low of 1.1548 to a score a high of 1.1626 following a drop in US yields. The 10-year yield is testing the horizontal support and has broken below the trendline.


GBP/USD: Sellers attack 50-DMA on monthly support break

GBP/USD prints a three-day downtrend following the key support break, pressured around 1.3740 during the early Asian session on Thursday. The cable pair broke an ascending support line, now resistance, from September 30 the previous day but refrained from closing below 50-DMA.


Gold bounded in familiar territory, riding dynamic support

Gold holds in a critical support structure on the daily chart. XAU/USD leans with a bullish bias with eyes on a break of $1,830. Lower US yields are supporting the bullish bias and are weighing on the greenback.

Gold News

MATIC outperforms Bitcoin and Ethereum, Polygon targets $3 and new all-time highs

MATIC price action has been in a bullish tear, trading to the inverse of nearly every other cryptocurrency. Consequently, it was positioned perfectly for a rally and is now on track to create a new all-time highest weekly close. A new all-time highest weekly close is on the horizon.

Read more

BOJ Preview: Focus on outlook tweaks ahead of general election Premium

Despite the recent depreciation in the yen and rising energy prices, the Bank of Japan (BOJ) is likely to maintain its monetary policy settings on Thursday, as it concludes its two-day monetary policy review meeting.

Read more