USD/JPY Forecast: Bears ready to jump in

Valeria Bednarik FXStreet

USD/JPY Current price: 103.62

US Treasury yields and equities advanced, providing support to USD/JPY.
Japanese markets will remain open this Thursday, while the rest of Asia will be out.
USD/JPY maintains a neutral stance just above the 103.15 support.

The USD/JPY pair is trading around 103.60, unchanged on a daily basis. The pair started the day on the back foot, falling within range, and recovered during US trading hours amid the renewed dollar’s demand. The positive tone of Wall Street and higher US Treasury yields provided support.

On Wednesday, the Bank of Japan published the Minutes of its latest meeting. The document showed that policymakers could consider tweaking its current bond-buying program to “enhance sustainability” in the longer-run. The country published the October Leading Economic Index, which improved to 94.3, while the Coincident Index contracted to 89.4. Japan will have its markets open this Thursday, and the country will publish the November Corporate Service Price Index.

USD/JPY short-term technical outlook

The USD/JPY pair is neutral-to-bearish according to intraday charts, but holding above the 103.15 support, a line in the sand, as below it, bears will likely increase their bets. In the 4-hour chart, the pair has been consolidating above a flat 20 SMA, while the longer ones maintain their bearish slopes. Technical indicators remain around their midlines without clear directional strength.

Support levels: 103.15 102.70 102.20

Resistance levels: 103.50 103.90 104.30

View Live Chart for the USD/JPY

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.