- The USD/JPY edges higher in the year’s last trading day, up some 0.03%.
- A risk-off market mood put capped the downtrend of the USD/JPY.
- USD/JPY Price Forecast: The upward bias to continue, a break above 115.20 would open the door for a test of the YTD high at 115.52.
As of year-end looms, the USD/JPY extends its rally to three consecutive days, trading at 115.12 during the New York session at the time of writing. A risk-off market mood, as portrayed by US equity indices trading in the red, while the CAC 40 and FTSE 100, the only two European stock markets open, slide between 0.28% and 0.32%, each.
In the meantime, US Treasury yields, with the 10-year benchmark note, edge lower one and a half basis points, down to 1.502%, a headwind for the USD/JPY. The US Dollar Index, a measure of the greenback’s value against a basket of six rivals, slides some 0.28%, sits at 95.70.
Thin liquidity conditions attributed to holidays in Japan, Australia, and New Zealand kept the USD/JPY within familiar levels. The lack of worldwide macroeconomic news, as investors book profits, put a lid on the USD/JPY, which in the last hour or so, retraced from monthly highs.
USD/JPY Price Forecast: Technical outlook
The USD/JPY hourly chart portrays the pair has an upward bias, even though it dipped to the confluence of the 50-hour simple moving average (SMA) and the daily pivot point around 115.06.
To the upside, USD/JPY’s first resistance is the year-to-date high is the November 24 high at 115.52. A breach of that level would expose crucial resistance levels, like the 116.00, followed by the December 2016 swing lows at 118.65.
On the other hand, the first line of defense for USD bulls would be 115.00. A break of that level would be the December 29 cycle low at 114.67 and the 200-hour SMA at 114.60.
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 rises above 1.0850 while remaining in overbought territory
The EUR/USD pair gains ground for the third successive session, trading around 1.0860 during the Asian hours on Tuesday. A technical examination of the daily chart indicates a bearish breakout as the pair breaks below an ascending channel pattern.

GBP/USD maintains position near 1.2900 as concerns over US economic growth persist
The GBP/USD pair recovers recent losses from the previous session, trading around 1.2890 during Asian hours on Tuesday. The pair edges higher as the US Dollar struggles amid concerns that tariff policy uncertainty could push the US economy into recession.

Gold price sticks to modest intraday gains amid weaker risk tone; remains below $2,900
Gold price rebounds from a one-week low and draws support from a combination of factors. Global trade war fears and geopolitical risks continue to underpin the safe-haven commodity. Fed rate cut bets keep the USD depressed and further benefit the non-yielding XAU/USD pair.

The crypto market cap dips to $2.44 trillion while Mt. Gox moves 11,833 BTC worth $932 million
The crypto market continued its ongoing downleg as the week started, as its market cap capitalization reached a low of $2.44 trillion on Tuesday, levels not seen since early November.

Gold price sticks to modest intraday gains amid weaker risk tone; remains below $2,900
Gold price rebounds from a one-week low and draws support from a combination of factors. Global trade war fears and geopolitical risks continue to underpin the safe-haven commodity. Fed rate cut bets keep the USD depressed and further benefit the non-yielding XAU/USD pair.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.