USD/JPY trades with modest gains around mid-104.00s, lacks follow-through


  • USD/JPY gain some traction on Wednesday amid reduced demand for the safe-haven JPY.
  • A softer tone surrounding the USD failed to impress bulls and kept a lid on any further gains.
  • Investors now look forward to US macro data, FOMC minutes for a fresh directional impetus.

The USD/JPY pair traded with a mild positive bias through the early European session, albeit lacked any strong follow-through buying. The pair was last seen trading around mid-104.00s, up around 0.11% for the day.

Following the previous day's good two-way price swings, the pair managed to regain some positive traction on Wednesday and was being supported by the prevalent upbeat market mood. The global risk sentiment remained well supported by the latest optimism over a potential early rollout of vaccine for the highly contagious coronavirus disease.

Adding to this, the smooth beginning of President-elect Joe Biden's transition to the White House and reports that the former Fed Chair Janet Yellen could become the next US Treasury Secretary further boosted investor's confidence. That said, a softer tone surrounding the US dollar kept a lid on any meaningful upside for the USD/JPY pair.

The market focus now shifts to a flurry of top-tier US macro data for some short-term trading opportunities. Wednesday's US economic docket highlights the releases of the preliminary (second estimate) GDP report, Durable Goods Orders, Initial Weekly Jobless Claims and final Michigan Consumer Sentiment Index for November.

Later during the US session, the latest FOMC meeting minutes will be scrutinized for the possibility of any further policy easing by the Fed in December. The Fed's policy outlook will play a key role in influencing the near-term USD price dynamics and assist investors to determine the next leg of a directional move for the USD/JPY pair.

Technical levels to watch

USD/JPY

Overview
Today last price 104.52
Today Daily Change 0.08
Today Daily Change % 0.08
Today daily open 104.44
 
Trends
Daily SMA20 104.47
Daily SMA50 104.95
Daily SMA100 105.58
Daily SMA200 106.7
 
Levels
Previous Daily High 104.76
Previous Daily Low 104.15
Previous Weekly High 105.14
Previous Weekly Low 103.65
Previous Monthly High 106.11
Previous Monthly Low 104.03
Daily Fibonacci 38.2% 104.38
Daily Fibonacci 61.8% 104.53
Daily Pivot Point S1 104.14
Daily Pivot Point S2 103.83
Daily Pivot Point S3 103.52
Daily Pivot Point R1 104.75
Daily Pivot Point R2 105.07
Daily Pivot Point R3 105.37

 

 

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