USD/JPY hangs near weekly low, just above mid-114.00s amid weaker USD


  • USD/JPY turned lower for the fourth successive day amid modest USD weakness.
  • Geopolitical tensions benefitted the safe-haven JPY and added to the selling bias.
  • The Fed-BoJ monetary policy divergence should limit further losses for the major.

The USD/JPY pair edged lower through the early European session and dropped closer to the overnight swing low, around the 114.60 region in the last hour.

Following an early uptick to the 114.80 area, the USD/JPY pair met with a fresh supply and drifted into the negative territory for the fourth successive day on Wednesday. Bears might now be looking to extend the recent sharp pullback from the 115.70 region touched last week amid the prevalent selling bias around the US dollar.

Fed officials downplayed the prospect of a 50bps hike in March, which, in turn, weighed on the buck. In fact, St. Louis Fed President James Bullard said that he did not favour a more aggressive policy response. Separately, Philadelphia Fed President Patrick Harker said that he is a little less convinced of a 50 bps hike.

On the other hand, the conflict between Russia and the West over Ukraine continued lending some support to the safe-haven Japanese yen. This was seen as another factor exerting some pressure on the USD/JPY pair, though the divergence between the Fed and the Bank of Japan policy outlook should help limit any further losses.

The markets have fully priced in an eventual Fed liftoff in March and expect five quarter-point rate hikes by the end of 2022. Conversely, the Bank of Japan has repeatedly reaffirmed to continue with its persistent and powerful monetary easing until further notice. This, in turn, warrants some caution for aggressive bearish traders.

Moving ahead, traders now look forward to the US ADP report on private-sector employment for some impetus later during the early North American session. The data might influence the USD price dynamics, though the market focus will remain on Friday's release of the closely-watched US monthly jobs report (NFP).

Technical levels to watch

USD/JPY

Overview
Today last price 114.64
Today Daily Change -0.05
Today Daily Change % -0.04
Today daily open 114.69
 
Trends
Daily SMA20 114.76
Daily SMA50 114.35
Daily SMA100 113.57
Daily SMA200 111.7
 
Levels
Previous Daily High 115.19
Previous Daily Low 114.57
Previous Weekly High 115.69
Previous Weekly Low 113.47
Previous Monthly High 116.35
Previous Monthly Low 113.47
Daily Fibonacci 38.2% 114.81
Daily Fibonacci 61.8% 114.95
Daily Pivot Point S1 114.44
Daily Pivot Point S2 114.19
Daily Pivot Point S3 113.82
Daily Pivot Point R1 115.07
Daily Pivot Point R2 115.44
Daily Pivot Point R3 115.69

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

GBP/USD climbs above 1.2500 after UK GDP data

GBP/USD climbs above 1.2500 after UK GDP data

GBP/USD gathers bullish momentum and trades above 1.2500 in the European session on Thursday. Pound Sterling benefits from the improving risk mood and the upbeat UK data, which showed that the economy expanded at an annual rate of 1.4% in Q4, surpassing the market expectation of 1.1%.

GBP/USD News
EUR/USD stays strongly bid toward 1.0450 ahead of EU data

EUR/USD stays strongly bid toward 1.0450 ahead of EU data

EUR/USD continues its upward momentum for the third straight session, eyeing 1.0450 in the European session on Thursday. The pair draws support from the unabated US Dollar selling in anticipation of an end to the Russia-Ukraine war. EU and US data also remain in focus. 

EUR/USD News
Gold price struggles to capitalize on intraday gains amid receding Fed rate cut bets

Gold price struggles to capitalize on intraday gains amid receding Fed rate cut bets

Gold price attracts buyers for the second straight day amid a combination of supportive factors. Concerns about Trump’s trade tariff and a modest USD weakness underpin the XAU/USD pair.

Gold News
Ripple's XRP eyes a recovery as investors switch toward accumulation

Ripple's XRP eyes a recovery as investors switch toward accumulation

Ripple's XRP is up 2% in the early Asian session on Thursday following rising accumulation among investors and a potential bottom signal in the MVRV Ratio.

Read more
How the European Union could counter US tariffs

How the European Union could counter US tariffs

With Trump ordering a 25% import tax on all steel and aluminium entering the US, trade tensions are inching closer to Europe. We take a closer look at how European policymakers could react. Spoiler alert: it's complicated.

Read more
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025