USD/JPY analysis: holding ground above 113.00
|USD/JPY Current price: 113.24
- Dollar's weakness offset the positive clues coming from yields and equities.
- The pair will retain the positive stance as long as it holds above 112.90.
The USD/JPY pair advanced up to 113.51 but trimmed daily gains to trade barely down ahead of the Asian opening. The pair was unable to hold on to gains despite the rally in worldwide equities and rising US Treasury yields, as the market has chosen to get rid of its dollars. Those factors, rather contained the decline, as the benchmark yield for the 10-year note hit a weekly high of 2.92%, holding nearby by the end of the US session. Equities were backed by progress in the US-China trade talks, with Wall Street finally moving firmly higher. Japanese data continues disappointing, as figures released at the beginning of the day came in below the market's expectations, with the November Corporate Goods Price Index down by 0.3% MoM and up 2.3% YoY, and Machinery Orders rising in October by less-than-expected, up 7.6% MoM and 4.5% YoY. The Tertiary Industry Index was up in November by 1.9% vs. an expected 0.9% advance. There are no relevant figures scheduled in Japan this Thursday.
From a technical point of view, the pair offers a neutral-to-bullish stance, as, in the 4 hours chart, buyers are defending ground around mild bullish 100 and 200 SMA, both converging a handful of pips below the current price. Technical indicators in the mentioned chart have retreated from their daily highs near overbought levels, but the downward strength eased well into positive ground, indicating quite limited selling interest. The upside will look more constructive on a recovery above 113.70 a strong static resistance level.
Support levels: 113.10 112.90 112.55
Resistance levels: 113.70 114.00 114.40
View Live Chart for the USD/JPY
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