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

• The USD/JPY gains 0.45% in the week amid an improved market mood.
• Reports from Russia said that Vladimir Putin is open to sending a delegation to Minsk for talks with Ukraine.
• USD/JPY Technical Outlook: Upward biased, but a daily close above 115.49, would open the door for a renewed challenge of YTD high at 116.35.

The USD/JPY is set to finish the week with gains, climbing 0.45%, amid a risk-on market mood, portrayed by global equities, while in the FX space, high-beta currencies lead. Newswires reported that Russian President Vladimir Putin is ready to hold talks with the government in Ukraine following the Russian invasion. The USD/JPY barely advances 0.02%, trading at 115.57 at press time.

Ukraine – Russia conflict update

Although Russia’s attacks continue for the third consecutive day, Russian Federation President Vladimir Putin “reportedly” is open to sending a delegation to Minsk for talks with Ukraine. The headline has kept investors calmed, as safe-haven peers recorded gains for two consecutive days. However, as reported by Bloomberg, it is only a matter of time before Russia’s forces would take control of Kyiv. That said, uncertainty keeps surrounding the Ukraine – Russia conflict, though caution is warranted when trading the financial markets.

In the meantime, the US economic docket featured Durable Goods Orders for January, which came at 1.6% m/m, higher than 0.6%  estimated. Meanwhile, the Federal Reserve’s favorite inflation gauge, the PCE, rose to 6.1% y/y, higher than the 5.8% foreseen, while Core PCE rose to 5.2%, more than the 5.1% expected. Additionally, the University of Michigan Consumer Sentiment Final for February increased to 62.8, better than the 61.7

USD/JPY Price Forecast: Technical outlook

The USD/JPY daily chart depicts the pair as upward biased. The daily moving averages (DMAs) reside below the spot price, with a bullish slope, but to further cement its bias, it would require a daily close above the February 24 close at 115.49.

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