- USD/JPY trades in a narrow range after recovering from a weekly low of 147.15.
- Mixed global stock performance and Japanese data to provide fresh impetus to the USD/JPY pair.
- Key levels in focus: support at Kijun-Sen (149.51) and potential rally towards the 150.00 threshold depending on CPI outcomes.
The USD/JPY began the Asian session almost unchanged, exchanging hands at around 149.55 after the pair reached a weekly low of 147.15 on Tuesday, but buyers stepping in lifted the pair toward the current exchange rates.
USD/JPY traders await the release of inflation data in Japan
On Thursday, European and Asian stocks closed mixed, while US markets remained closed due to the Thanksgiving holiday. That kept the USD/JPY pair trading within a 70-pip range, though the resumption of activities in Japan and the United States (US) would boost liquidity ahead of the weekend.
USD/JPY buyers remain hopeful the pair would extend its rally after Japan revealed a negative Gross Domestic Product (GDP) reading in the third quarter. Nevertheless, soft inflation figures released in the United States, spurred speculations the US Federal Reserve (Fed) ended its tightening cycle. Consequently, US bond yields plunged, a headwind for the pair.
Ahead of the week, the Japanese docket will feature inflation data. The Consumer Price Index (CPI) expanded by 3% YoY in September. Core CPI is estimated to jump by 3%, above the previous month’s 2.8% increase. If inflation numbers exceed the prior month’s figures, that could boost the Yen and tumble the USD/JPY below the first support seen at the Kijun-Sen at 149.51. On the other hand, a further upside is expected, with buyers eyeing the 150.00 mark.
USD/JPY Price Analysis: Technical outlook
From a technical perspective, the USD/JPY remains neutral to upward biased, on the upside capped by the confluence of the Tenkan and Kijun-Sen at around 149.47/53. A breach of the latter will expose the 150.00 figure, followed by the November 13 high at 151.91. On the flip side, if USD/JPY drops inside the Ichimoku Cloud, the first support would be the November 22 low at 148.01, followed by the weekly low at 147.15. Once cleared, the 147.00 figure would be up for grabs.
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 holds on to intraday gains after upbeat US data
EUR/USD remains in positive ground on Friday, as profit-taking hit the US Dollar ahead of the weekend. Still, Powell's hawkish shift and upbeat United States data keeps the Greenback on the bullish path.
GBP/USD pressured near weekly lows
GBP/USD failed to retain UK data-inspired gains and trades near its weekly low of 1.2629 heading into the weekend. The US Dollar resumes its advance after correcting extreme overbought conditions against major rivals.
Gold stabilizes after bouncing off 100-day moving average
Gold trades little changed on Friday, holding steady in the $2,560s after making a slight recovery from the two-month lows reached on the previous day. A stronger US Dollar continues to put pressure on Gold since it is mainly priced and traded in the US currency.
Bitcoin to 100k or pullback to 78k?
Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.
Week ahead: Preliminary November PMIs to catch the market’s attention
With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.
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.