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USD/JPY Forecast: Pressuring Its Recent Highs, Looking To Run Toward 111.00

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USD/JPY Forecast: Pressuring Its Recent Highs, Looking To Run Toward 111.00

USD/JPY Current Price: 110.14

  • Machinery Orders in Japan bounced nicely in November, up by 18%.
  • US Retail Sales beat expectations, weighing on safe-haven assets.
  • USD/JPY pressuring its recent highs, looking to run toward 111.00.

The USD/JPY pair spent the first half of the day consolidating around Wednesday’s close, surging during American trading hours to 110.17 on the back upbeat US Retail Sales, which further spooked away the ghost of recession. Speculative interest had no clear bias after the US and China signed phase one of the trade deal on Wednesday, disappointed by the few details agreed but hopeful about what phase two may bring. Sentiment improved as US data.

In the data front, Japan released November Machinery Orders, which came in at 18%, beating the market’s expectations and recovering from -6.1% in the previous month. The country also released the December Producer Price Index, which was up by 0.9% YoY as expected. This Friday, Japan won’t publish relevant data.

USD/JPY Short-Term Technical Outlook

The USD/JPY pair has stabilized at around 110.10, holding on to its positive tone in the short-term. The 4-hour chart shows that the 20 SMA, which maintains its bullish slope, provided intraday support, leading the way higher. Technical indicators, however, remain directionless, the Momentum around its 100level and the RSI in overbought territory, indicating that bulls retain control of the pair.

Image Sourced from Pixabay

 

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Posted-In: FXStreet USD/JPYNews Commodities Forex Global Markets General

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