USD/JPY analysis: holding above 101.00, but bearish anyway
|USD/JPY Current price: 101.15
The USD/JPY pair rallied up to 101.83 this Thursday, as Asian equities were sharply higher following the positive lead coming from oil's recovery and Wall Street's gains, with the pair further advancing early in the US session, as the dollar enjoyed some short term demand following better-than-expected economic data. Nevertheless, the release of poor US housing figures kick started a downward correction that accelerated with US indexes plummeting amid banking woes. Retail sales in Japan unexpectedly fell in August for the first time in three months, contracting by 2.1% when compared to August 2015. During the upcoming Asian session, the country will release its National and Tokyo inflation figures, expected to have changed little from previous negative readings. The pair is holding above the 101.00 level, but barely, and the risk remains towards the downside, particularly if Asian equities edge lower. From a technical point of view and in the short term, the downward potential is moderated, given that in the 1 hour chart, the price is above its 100 and 200 SMAs, whilst technical indicators are turning higher within bearish territory. In the 4 hours chart, however, is the upside the one looking limited, given that the early rally stalled around the 100 and 200 SMAs, while technical indicators are retreating within positive territory, supporting some further slides, at least towards the critical 100.65 level.
Support levels: 101.00 100.65 100.35
Resistance levels: 101.40 101.85 102.30
View Live Chart for the USD/JPY
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