USD/JPY analysis: holding near key 113.40 resistance
|USD/JPY Current price: 113.24
- Bulls made a pause but still dominate USD/JPY.
- BOJ's Kuroda said that Japan is no longer in a stage in where overcoming deflation is the appropriated conduct.
The USD/JPY pair stands where it left last Friday, around the 113.20 ahead of Tuesday's opening, as the market's attention was somewhere else, more specifically, in Europe, leaving the pair confined to a 25 pips' range daily basis. The BOJ released the Minutes of its latest monetary policy meeting at the beginning of the day, but as usual, the document didn't surprise. Governor Kuroda later spoke and gave the first hint of a possible change in the monetary policy in the foreseeable future, saying that Japan is no longer in a stage in where overcoming deflation is the appropriated conduct. Nevertheless, he reiterated that policymakers are not preparing any immediate tightening, and repeated that rates will remain low for "an extended period of time." Japan will release September Overall Household Spending, seen up 1.6% YoY vs. the previous 2.8%.
The 4 hours chart suggest that bulls have made a pause but didn't give up just yet, as the pair remains close, but below the 113.40 region, a strong static resistance, also above its 100 and 200 SMA, although with the shortest below the larger one, which limits the upward potential. Technical indicators in the mentioned chart ease within positive levels, rather reflecting buyers' on pause than suggesting increased selling interest. The bullish potential will suffer only with a break below 112.60.
Support levels: 113.00 112.60 112.30
Resistance levels: 113.40 113.85 114.10
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