USD/JPY analysis: marginally higher, not enough to shrug off the bearish potential
|USD/JPY Current price: 111.49
Having traded within a tight range ever since the week started, the USD/JPY ended up this Tuesday, surging alongside with US Treasury yields. The recovery, however, was not enough to change the neutral stance seen over these last few days, as the pair remained well below 112.00, ending around 111.50 after peaking at 111.78. Yields advanced after a local auction, although the movement was quite shallow, with the 10-year benchmark settling at 2.26% from previous 2.25%. BOJ´s Governor Kuroda will be on the wires during the upcoming Asian session, but is not expected to surprise markets with a change in the monetary policy bias.
Technically, the 4 hours chart shows that the price has settled midway between the 50% and the 61.8% retracement of the latest bullish run, while moving averages remain flat, as technical indicators keep lacking directional strength, currently within neutral territory. The risk remains towards the downside, albeit only a downward acceleration through 111.00 will confirm additional declines. The bearish pressure will likely ease on a break above 112.00, but gains are hardly expected to extend beyond 113.00 this week.
Support levels: 111.00 110.50 109.90
Resistance levels: 111.65 112.00 112.45
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