- Based on a softer US inflation report, USD/JPY climbs during the week by 1.14%, after a volatile last three days.
- USD/JPY is neutral biased, but a doji emerging in the daily chart could pave the way for further upside.
- In the near term, the major is sideways, though oscillators point upwards, so it is slightly skewed to the upside.
The USD/JPY slightly climbed on Thursday following the release of the University of Michigan Consumer Sentiment for August, which exceeded estimations, but consumer expectations of inflation remained mixed. Nevertheless, it was not an excuse for investors seeking return, shifting toward riskier assets, to the detriment of safe-haven assets. At the time of writing, the USD/JPY is trading at 133.48 above its opening price by 0.39%.
USD/JPY Price Analysis: Technical outlook
The USD/JPY daily chart portrays Thursday’s price action formed a doji, preceded by a downtrend, indicating that the downtrend is losing steam. Worth noticing the Relative Strength Index accelerated its uptrend to the 50-midline, showing that buying pressure is picking up. Nevertheless, the major remains sideways unless buyers reclaim the 50-day EMA at 135.29.
In the near term, the USD/JPY hourly chart the pair as neutral. However, price action since late Wednesday shows that the pair has begun trading upwards, but at a steady pace, as shown by the Relative Strenght Index (RSI), which could mean some things: USD/JPY shorts booking profits, after a stellar run of 700 pips downwards, and buyers slowly beginning to add to their longs, in speculation of higher US 10-year bond yield rates.
Therefore, the USD/JPY is sideways. Upwards, the major’s first resistance would be the confluence of the 100 and 200-hour EMAs at 133.84-85, followed by the 135.00 figure, followed by the August 10 high at 135.30.
On the flip side, the USD/JPY first support would e the 50-hour EMA at 133.07. The break below exposes crucial demand zones, the August 11 pivot low at 131.73, followed by the August 2 low at 130.39.
USD/JPY Hourly chart
USD/JPY Key Technical Levels
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 appreciates to near 1.0400 ahead of Eurozone HICP inflation
EUR/USD continues its winning streak for the third successive session, trading around 1.0400 during the Asian hours on Tuesday. The upside of the EUR/USD pair is attributed to the subdued US Dollar.
GBP/USD rises toward 1.2550 as US Dollar continues to correct downwards
GBP/USD continues to rise for the third consecutive day, trading near 1.2530 during Tuesday's Asian session. The pair's upward momentum is driven by a subdued US Dollar. Later in the day, the US ISM Services Purchasing Managers Index is set to be released.
Gold price sticks to modest gains; lacks bullish conviction amid Fed's hawkish shift
Gold price attracts some haven flows amid worries about Trump’s tariff plans. The Fed’s hawkish shift and elevated US bond yields cap gains for the XAU/USD. Traders seem reluctant ahead of FOMC minutes and US NFP releases later this week.
Solana Price Forecast: Open Interest reaches an all-time high of $6.48 billion
Solana price trades slightly down on Tuesday after rallying more than 12% the previous week. On-chain data hints for rallying continuation as SOL’s open interest reaches a new all-time high of $6.48 billion on Tuesday.
Five fundamentals for the week: Nonfarm Payrolls to keep traders on edge in first full week of 2025 Premium
Did the US economy enjoy a strong finish to 2024? That is the question in the first full week of trading in 2025. The all-important NFP stand out, but a look at the Federal Reserve and the Chinese economy is also of interest.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.