USD/JPY Current price: 117.83
View Live Chart for the USD/JPY
Short term bullish. The USD/JPY pair plummeted to 116.69 during the Asian session, with the Japanese yen accelerating its advance against most of its major rivals amid another round of poor Chinese data. According to the latest release, China CPI in December rose 0.5% monthly basis, thus the year-on-year reading grew less than expected, up to 1.6%. The producer price index, however, remained extremely negative, printing -5.9% in the same month. The pair recovered from the low, accelerating its advance with the European opening and trading near its daily high of 117.91 ahead of the US opening. Nevertheless, the upside potential seems limited to the short term, with the bearish longer term trend still holding in place. Technically, the 1 hour chart shows that the price remains well below a bearish 100 SMA currently around 118.10, while the Momentum indicator is turning lower in overbought territory, while the RSI indicator hovers around 54. In the 4 hours chart, the technical indicators have bounced sharply from oversold territory, and maintain strong bullish slopes, supporting further gains on a break above the mentioned resistance.
Support levels: 117.60 117.25 116.80
Resistance levels: 118.10 118.45 118.80
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