The most active trading sessions for the USD/JPY take place in Tokyo, London and New York. Day traders look mostly to the London and New York sessions but those trading wishing to trade on the Asian markets can do so between 2400 GMT - 0900 GMT.
USD/JPY has traditionally been the most politically sensitive currency pair, with successive U.S. governments using the exchange rate as a lever in trade negotiations with Japan. For day-to-day trading, the most significant feature of USD/JPY is the heavy influence exerted by Japanese institutional investors and asset managers.
The USD/JPY has recently dipped below 101.00. Read the Daily Forex USD to Japanese Yen forecast and get access to the most up-to-date statistics, analyses and economic events regarding the USD/JPY.
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Immediately after the US jobs report, the USD/JPY fell to the 112.55 support level, and as the markets absorbed the results, the pair returned to settle around 113.05 as of this writing.
The USD/JPY's attempts to recover were still weak yesterday.
The recent sell-off of the USD/JPY currency pair pushed it towards the 112.53 support level, its lowest in more than a month, but it settled around the 113.55 level after the dollar’s gains from Jerome Powell’s warning that the interest rate hike may come sooner than expected.
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For the third day in a row, the USD/JPY is settling below the 113.00 support level after strong selloffs which the pair recently witnessed as it collapsed from its highest level in six years, when it tested the 115.52 resistance level last week.
A state of risk-aversion prevailed in global financial markets at the end of last week’s trading amid decisions by countries around the world to impose restrictions due to a new variant of the Corona virus that resists available vaccines.
The US dollar has pulled back ever so slightly during the trading session on Thursday, which of course was Thanksgiving in the United States.
Undoubtedly, expectations of raising US interest rates helped US dollar pairs achieve strong and sharp gains.
The USD/JPY touched long-term highs in early trading today near the 115.150 ratio, essentially testing levels not seen since March 2017.
The USD/JPY continued its upward momentum to the 115.14 resistance level, its highest in five years, where it settled as of this writing.
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Since last week, there have been sell-offs in the USD/JPY amid the return of an appetite for safe havens, including the Japanese yen.
The S&P 500 went back and forth on Friday, essentially going nowhere.
The US Dollar Index retreated from its highest level in 16 months after hitting a major technical resistance level on the charts.
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Sign up to get the latest market updates and free signals directly to your inbox.The catalysts for the USD's gains have been increasing, and they all come down to one thing: the approaching date of raising US interest rates.
The gains of the USD/JPY reached the resistance level of 114.31 before settling around 114.15 as of this writing, awaiting the announcement of US retail sales figures, which directly affect investor sentiment.
The recent record US inflation numbers have increased market expectations that the US Federal Reserve may surprise everyone by announcing an increase in US interest rates at any time, especially since it has already reduced its purchases of bonds.