USD/JPY holding steady around 115.50 as financial markets head into the weekend

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  • USD/JPY gains 0.45% on the week amid an improved market mood.
  • Russian reports said that Vladimir Putin is open to sending a delegation to Minsk for talks with Ukraine.
  • USD/JPY Technical Outlook: Bias to the upside, but a daily close above 115.49 would open the door for a renewed challenge of the yearly high at 116.35.

The USD/JPY is set to end the week with gains, rising 0.45%, amid a state of risk appetite in the market, represented by global stocks, while in the forex space, high beta currencies lead. The news reported that Russian President Vladimir Putin is ready to hold talks with the Ukrainian government after the Russian invasion. USD/JPY is up just 0.02%, trading at 115.57 at press time.

Update on the conflict between Ukraine and Russia

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Although Russia’s attacks continue for the third day in a row, the President of the Russian Federation, Vladimir Putin, is “reportedly” willing to send a delegation to Minsk for talks with Ukraine. The headline has kept investors calm as safe haven pairs posted gains for two consecutive days. However, as Bloomberg reported, it is only a matter of time before Russian forces take control of Kiev. That said, uncertainty continues to surround the conflict between Ukraine and Russia, although caution is warranted when trading the financial markets.

Meanwhile, the US economic calendar presented orders for durable goods for January, which came in at 1.6% m/m, higher than the 0.6% estimate. For its part, the Federal Reserve’s favorite inflation gauge, PCE, rose to 6.1% y/y, higher than the 5.8% expected, while core PCE rose to 5.2%, higher than the 5.1% expected. In addition, the final assessment of consumer sentiment from the University of Michigan for February increased to 62.8, better than the 61.7

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USD/JPY Price Forecast: Technical Outlook

The USD/JPY daily chart shows the pair with a bullish bias. The daily moving averages (DMAs) are below price, sloping to the upside, but to further consolidate their bias would require a daily close above the Feb 24 close at 115.49.

If that scenario plays out, the first resistance for USD/JPY would be the February 15 daily high at 115.87. A decisive break would send USD/JPY towards 116.00, followed by the yearly high at 116.35.

Additional technical levels

Source: Fx Street

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