USD/JPY analysis: buyers losing interest
|USD/JPY Current price: 111.73
- Japan´s 10-day holiday to kick-start this Tuesday.
- US Treasury yields rose following robust spending data.
The USD/JPY pair edged higher at the beginning of the week, although it faltered near the 112.00 figure, ending the day at 111.70. The advance was backed by US Treasury yields, which recovered from Friday's lows amid resurgent spending in the US. According to March data, Personal Spending posted its largest one-month growth since 2009, up by 0.9% when compared to February, spooking fears of an economic slowdown. The benchmark yield for the 10-year Treasury note was up to 2.53%. Additionally, US equities managed to post a modest intraday advance, trimming pre-opening losses.
Japan started the week with a holiday that will extend during the upcoming days, as the country established an unprecedented 10-day holiday amid the Emperor´s abdication in favor of his son. The macroeconomic calendar will be quite light throughout the week, with nothing scheduled in the country.
The USD/JPY pair found buyers around a directionless 200 DMA for a third consecutive day, finishing it a couple of pips above an also flat 20 SMA. In the 4 hours chart, the pair has settled above all of its moving averages that anyway lack directional strength, while technical indicators turned flat after reaching their midlines, reflecting the absence of buying interest once the pair nears the critical 112.00 level. A more positive outlook could come on a break above 112.10, quite unlikely for the first half of the day.
Support levels: 111.35 111.05 110.80
Resistance levels: 112.10 112.40 112.85
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