- USD/JPY has been bid in the Tokyo open, with bulls stepping in following a slide from the 108.50s which were taken on with a recovery in the greenback.
- USD/JPY is currently trading at 108.32, up from the lows of 108.29 as traders get set for the Aussie retail sales data.
USD/JPY has been in a chop, much like the rest of the currency markets as we head into a close for the week. One of the major stories was the Swiss franc and SNB yesterday, although the market has swallowed that and instead says with a risk-on profile as investors remain optimistic over the Sino/US trade negotiations.
At the same time, the cautionary track that that Fed has now taken leaves a comfortable foundation for global equities to continue to recover, with yet another gain on Wall Street overnight, setting the stage for a positive close for the week.
On the data front, "US jobless claims struck a four-week low despite some early indications that filings by federal workers are on the rise (on the back of the partial government shutdown). Overall, the US labour market remains very tight with plenty of labour demand out there to absorb some of the fallout should the government shutdown persist for too long," as explained by analysts at ANZ Bank.
USD/JPY levels
Valeria Bednarik, Chief Analyst, at FXStreet explained that the upside potential seems quite limited, as the pair is also developing far below its moving averages, which maintain their downward slopes, while technical indicators recover but within negative levels:
"Furthermore, the 61.8% retracement of the mentioned slide, which comes around 109.05 has capped advances earlier this week. The 38.2% retracement, on the other hand, comes at 107.55, with a break below skewing the risk to the downside heading into the weekly close."
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
EUR/USD stays in daily range slightly below 1.0900
EUR/USD continues to move up and down in a narrow band slightly below 1.0900 in the second half of the day on Monday. The modest improvement seen in risk mood makes it difficult for the US Dollar to find demand and helps the pair stay in range.
GBP/USD treads water above 1.2900 amid risk recovery
GBP/USD is keeping its range play intact above 1.2900 in the American session on Monday. The positive shift seen in risk sentiment doesn't allow the US Dollar to gather strength and helps the pair hold its ground ahead of this week's key data releases.
Gold struggles to hold above $2,400
Gold loses its traction and trades in negative territory below $2,400 after suffering large losses in the second half of the previous week. The benchmark 10-year US Treasury bond yield holds above 4.2% and risk flows return to markets, not allowing XAU/USD to rebound.
Solana could cross $200 if these three conditions are met
Solana corrects lower at around $180 and halts its rally towards the psychologically important $200 level early on Monday. The Ethereum competitor has noted a consistent increase in the number of active and new addresses in its network throughout July.
Election volatility and tech earnings take centre stage
/stock-market-graph-gm532464153-55981218_XtraSmall.jpg)
The US Dollar managed to end the week higher as Trump Trades ensued. Safe-havens CHF and JPY were also higher while activity currencies such as NOK and NZD underperformed.