USD/JPY’s upside attempts remain capped below 104.75


  • USD/JPY rebound from 104.00, limited below 104.75
  • The dollar is consolidating losses with the investors in a cautious mood.
  • Breach of 104.00 might accelerate USD's downtrend.

The US dollar is trading on a slightly negative tone against the Japanese yen on Friday, with the pair’s recovery from 104.00 low on Thursday stalling below 104.75.

Dollar consolidates losses in a cautious market

The greenback has been moving back and forth within previous ranges on Friday, unable to stage a significant recovery from a key support level at 104.00. Growing concerns about the economic impact of the second round of lockdowns in Europe and the cautious market mood anticipating a contested election in the US are keeping USD/JPY bulls in check.

On the macroeconomic front, the upbeat US personal income and outlays data, which has shown larger than expected increases in September, have been practically ignored by the markets.

USD/JPY's downtrend might accelerate below 104.00

A technical perspective shows the pair is neutral, on the short-term with risks skewed to the downside, according to FXStreet’s Chief Analyst Valeria Bednarik, who points out to key support at 104.00:  “The 4-hour chart shows that the pair was unable to retain ground above a bearish 20 SMA, currently below it. The 100 and 200 SMAs maintain their bearish slopes well above the shorter-one, all of them indicating prevalent selling pressure. Technical indicators, in the meantime, hover within neutral levels, without clear directional strength (…) The USD/JPY pair has bottomed around 104.00 in September, and once again this October, with a break below the region opening doors for a steeper decline.”

Technical levels to watch

USD/JPY

Overview
Today last price 104.58
Today Daily Change -0.04
Today Daily Change % -0.04
Today daily open 104.62
 
Trends
Daily SMA20 105.23
Daily SMA50 105.51
Daily SMA100 106.08
Daily SMA200 107.15
 
Levels
Previous Daily High 104.73
Previous Daily Low 104.03
Previous Weekly High 105.75
Previous Weekly Low 104.34
Previous Monthly High 106.55
Previous Monthly Low 104
Daily Fibonacci 38.2% 104.46
Daily Fibonacci 61.8% 104.3
Daily Pivot Point S1 104.18
Daily Pivot Point S2 103.76
Daily Pivot Point S3 103.48
Daily Pivot Point R1 104.89
Daily Pivot Point R2 105.16
Daily Pivot Point R3 105.59

 

 

 

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

USD/JPY ignores downbeat Tokyo CPI, trades mixed above 104.00

USD/JPY traders look for strong signals to break the chain of three-day declines. Tokyo CPI slipped below -0.6% forecast, core CPI matched -0.7% expected in November. Risks struggle amid US off, mixed news on vaccine, US-China front. A light calendar can extend the sideways moves.

USD/JPY News

AUD/USD: Fizzles upside momentum below 0.7400 but bears await clear signals

AUD/USD eases after refreshing the three-month top the previous day, downside have recently been confined though. Chatters surrounding US-China relations, virus woes probe risk-on but absence of the US traders, light calendar elsewhere, limits the moves.

AUD/USD News

Gold: Bears noting old support for a discount

The price of gold has broken into bearish territory below a 38.2% Fibonacci retracement. In the recent good news in markets, the price of the yellow metal has come under renewed pressure. Bears will seek a discount on a pullback to retest old support, expected to turn resistance. 

Gold news

WTI regains $45.00 even as choppy session limits the moves

WTI fades pullback moves from the highest in nine months. The energy benchmark eased from the multi-day high the previous day as global optimism, mainly fuelled through the coronavirus (COVID-19) vaccine hopes, fizzled. Also challenging the oil bulls was the US holiday due to Thanksgiving Day.

Oil News

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures