USD/JPY struggling near one-week lows amid risk-off mood


The Japanese Yen continues to benefit from global flight to safety and dragged the USD/JPY pair to a one-week low level of 109.20 on Tuesday. 

After yesterday's bearish gap, the pair remained under some selling pressure for the second consecutive session and continues to be weighed down by escalating geopolitical tension. 

   •  North Korea's H-Bomb rattles Monday's markets - BBH

The latest news headlines that N. Korea could possibly launch another ICBM-grade rocket before Saturday forced investors seek refuge in traditional safe-haven assets - like the Japanese Yen. 

   •  N. Korea spotted moving ICBM-grade rocket towards west coast

Also collaborating to the pair's heavy offered tone was persistent weakness around the US Dollar, which continues to drift lower in reaction to Friday's dismal US jobs report.

In absence of any major market moving economic releases from Japan, broader market risk sentiment would continue to act as an exclusive driver of the pair's movement on Tuesday.

Later during the NA session, the US factory orders data and speeches from various Fed officials - Brainard, Kashkari, and Kaplan would also be looked upon for some impetus. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "the 4 hours chart shows that the price is well below a bearish 200 SMA and stuck around a horizontal 100 SMA, while technical indicators lost downward strength, but remain within negative territory, overall keeping the risk towards the downside."

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 

EUR/USD News

GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 

GBP/USD News

Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures