USD/JPY analysis: more gains only beyond 112.00
|USD/JPY Current price: 111.88
The USD/JPY pair traded as high as 111.90, and settled a few pips below the level late US sesion, with the JPY affected by the sudden slide in gold prices seen early London. The commodity shed nearly $20 in a matter of seconds, with no certain catalyst behind the move, and a suspected "fat finger" as gold futures saw a huge spike in volume. The pair eased after the release of soft US data, but bounced back during the American session, despite the yield curve in the US continued to flatten amid falling inflation expectations, and the 10-year benchmark fell down to 2.13% from previous 2.14%. There are no major releases scheduled during the upcoming Asian session, which means that the pair will likely follow the lead of equities. From a technical point of view, the 4 hours chart presents a positive tone, given that technical indicators have managed to bounce after nearing their mid-lines, whilst the price remains above its 100 and 200 SMAs, both lacking directional strength. Nevertheless, the pair needs to break above 112.00, the 38.2% retracement of the latest bullish run to be able to post a more sustainable advance.
Support levels: 111.60 111.20 110.90
Resistance levels: 112.00 112.45 112.80
View Live Chart for the USD/JPY
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.