USD/JPY fails to recover and targets November lows

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  • The Japanese yen was one of the biggest gainers on Thursday amid lower bond yields.
  • The dollar continues to be affected by the FOMC minutes.
  • USD/JPY is about to post the lowest daily close in almost three months.

The USD/JPY is around the region of 138.15/20, maintaining a bearish tone given the weakness of the dollar, but also given the strengthening of the Japanese yen. The pair bottomed at 138.04, the lowest since November 15, before bouncing modestly higher.

As long as USD/JPY remains below 138.50, more losses seem likely. Immediate support is the 138.00 area, followed by the November low at 137.65. The pair is on track for the lowest daily close since August 26, another bearish sign.

The dollar under pressure

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The dollar has been under pressure since Wednesday. The FOMC minutes added to the negative tone. The expectations that the Fed could slow down the pace of interest rate hikes already at the next meeting, on December 13/14, weighed on the dollar and boosted Treasuries. The US 10-year yield fell to 3.68%, nearing the monthly low. The DXY Index is down 0.35%, trading at 105.75, heading for the lowest daily close since mid-August.

Declining bond yields boosted the yen overall. The currency is among the best performers in a quiet session. Wall Street is closed due to a holiday in the United States (Thanksgiving Day).

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The rest of the week will not be published economic data in the United States. In Japan, the Tokyo CPI Consumer Price Index will be released on Friday. It will be a shortened session on Wall Street that will resume normal activity on Monday.

USD/JPY technical levels

USD/JPY

Overview
Last price today 138.26
Today I change daily -1.23
Today Daily Variation % -0.88
today’s daily opening 139.49
Trends
daily SMA20 143.68
daily SMA50 144.94
daily SMA100 141.12
daily SMA200 133.72
levels
previous daily high 141.61
previous daily low 139.17
Previous Weekly High 140.8
previous weekly low 137.67
Previous Monthly High 151.94
Previous monthly minimum 143.53
Daily Fibonacci of 38.2% 140.1
Daily Fibonacci of 61.8% 140.68
Daily Pivot Point S1 138.57
Daily Pivot Point S2 137.64
Daily Pivot Point S3 136.12
Daily Pivot Point R1 141.01
Daily Pivot Point R2 142.54
Daily Pivot Point R3 143.46

Source: Fx Street

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