OctaFX | OctaFX Forex Broker
Open trading account

USD/JPY climbs to over 2-week tops, closer to mid-109.00s

   •  Renewed US-China trade optimism dents JPY’s relative safe-haven status.
   •  Softer Japanese National CPI further weighs on JPY and remained supportive.
   •  Subdued USD price action seemed to be only factor capping additional gains.

The USD/JPY pair held on to its mildly positive tone for the fourth consecutive session and is currently placed at 2-1/2 week tops, around the 109.35-40 region.

The market cheered overnight reports that the US officials were considering rolling back import levies on Chinese goods to calm markets and ease trade tensions. The news triggered a late rally in the US equity markets and dented the Japanese Yen's relative safe-haven status.

The Japanese Yen was further weighed down by today's release of softer domestic National Core CPI print, falling more than expected to 0.7% y/y rate in December as compared to 0.8% rise expected and 0.9% previous, and extended some additional support to the major. 

Meanwhile, the US Dollar managed to preserve/add to the previous session's uptick but lacked any strong follow-through amid dovish Fed expectations and might now turn out to be the only factor that might hold bullish traders from placing any aggressive bets.

There isn't any major market-moving economic data due for release from the US and hence, the broader market risk-sentiment, coupled with the USD price dynamics might continue to act as key determinants of the pair's momentum on the last trading day of the week. 

Technical outlook

Omkar Godbole, FXStreet's own Analyst and Editor write: “A close above 109.09 (high of last week's doji candle) would confirm bearish exhaustion and open the doors for a move above the psychological hurdle of 110.00.”

“That said, the overall outlook remains bearish while the pair is held below the former-support-turned-resistance of the 100-day moving average (MA), currently at 112.072,” he added further.

USD/CAD Technical Analysis: Firming up support for a run at 1.3300

USD/CAD, 15-Minute The Dollar's rebound against the Loonie remains limited, caught on the long side of support from 1.3250, but bullish momentum
Read more Previous

UK retail sales and US industrial production amongst market movers today – Danske Bank

According to analysts at Danske Bank, UK retail sales for December are set to provide an insight into whether consumer spending in the UK stayed robus
Read more Next
Start livechat