USD/JPY analysis: flat amid limited demand for safe-havens
|USD/JPY Current price: 111.12
- Japanese economic growth beat the market's expectations in Q2.
- The USD/JPY pair continues ranging as both currencies are treated equally in its relation to risk.
The USD/JPY pair has spent the day confined to a well-limited range around the 111.00 figure, as safe-haven assets fell outside investors' interest at the beginning of the week. Data coming from Japan was unable to affect the pair, as usual, but the country released Q2 GDP which was up yearly basis 3.0%, beating market's forecast for 2.6%, and well above the previous 1.9%. Quarterly basis, economic growth was of 0.7%, as expected. Meanwhile, US Treasury yields hovered around their Friday's closing levels, failing to provide fresh directional clues to USD/JPY, while European and US indexes hovered around their opening levels all through the sessions. The upcoming Asian session won't bring much of relevance, as the Asian country will release money figures and Machine Tool Orders for August.
The technical picture is neutral, as the pair has been ranging pretty much since mid-August. The short-term picture is neutral-to-bullish, as, in the 4 hours chart, the price continues moving around horizontal and parallel 100 and 200 SMA, both indicating the absence of a clear directional trend, while technical indicators entered positive ground, the Momentum heading north but the RSI now flat around 51. The pair would need to clear the resistance area between 111.40 and 111.50 to be able to extend its gains up to 112.14, August high and a key breakout point.
Support levels: 110.90 110.65 110.25
Resistance levels: 111.45 111.80 112.15
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