USD/JPY Current Price: 108.66
- The Bank of Japan will have a monetary policy meeting this week.
- US equities and government yields closed Friday with gains, keeping the pair afloat.
- USD/JPY has chances to extend its advance to 109.31, August monthly high.
The USD/JPY pair has finished the week with modest gains at 108.66, having been unable to reach a fresh October high. The pair has spent these last few days ranging amid persistent Brexit uncertainty keeping demand for safe-haven assets underpinned. The yen lost some ground on Wednesday, following headlines related to the BOJ’s future monetary policy. According to those, policymakers are considering lowering their forecast for economic growth and inflation this year. The central bank is scheduled to meet this week, and no particular announcement is expected this time, although there’s mounting speculation that Kuroda & Co. will pave the way for additional stimulus.
Helping the pair to advance, US Treasury yields edged higher on Friday, with the benchmark yield on the 10-year note closing the week at 1.80%. Wall Street also posted a substantial advance at the end of the week. At the start of the week, Japan will publish the September Corporate Service Price Index, seen at 0.5% from the previous 0.6%.
USD/JPY short-term technical outlook
The USD/JPY pair has continued to consolidate at the upper end of its October range, meeting buyers on pullbacks to the 23.6% retracement of such rally. In the daily chart, it remains above its 20 and 100 DMA, but below a directionless 200 DMA, which stands a few pips above 109.00. The Momentum indicator eases from overbought levels, while the RSI consolidates around 60, lacking clear directional strength but, given that they stand well into positive ground, leaning the risk to the upside. In the shorter term, and according to the 4-hour chart, the pair is neutral-to-bullish as it holds above a directionless 20 SMA, but with technical indicators still stuck to their midlines.
Support levels: 108.25 108.00 107.75
Resistance levels: 108.70 109.00 109.35
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.
Recommended Content
Editors’ Picks
AUD/USD: Next stop emerges at 0.6580
The downward bias around AUD/USD remained unabated for yet another day, motivating spot to flirt with the area of four-week lows well south of the key 0.6700 region.
EUR/USD looks cautious near 1.0900 ahead of key data
The humble advance in EUR/USD was enough to partially leave behind two consecutive sessions of marked losses, although a convincing surpass of the 1.0900 barrier was still elusive.
Gold extends slide below $2,400
Gold stays under persistent bearish pressure after breaking below the key $2,400 level and trades at its lowest level in over a week below $2,390. In the absence of fundamental drivers, technical developments seem to be causing XAU/USD to stretch lower.
Why this week could be explosive for Ethereum
Ethereum (ETH) is down nearly 1% on Monday as exchanges have begun confirming Tuesday as the launch date for ETH ETFs. Considering the ETH ETF launch and the upcoming Bitcoin Conference, this week could prove crucial for Ethereum.
What now for the Democrats?
Like many, I applaud Biden’s decision. I would have preferred that he’d made it sooner, but there’s still plenty of time for the Democrats to run a successful campaign. In fact, I wish something on the order of a two-month campaign – as opposed to a two-year campaign – were the norm and not the exception.