USD/JPY analysis: mute at around 108.60
|USD/JPY Current price: 108.57
- The USD/JPY pair continues to lack directional strength.
- Risk-related trading on pause ahead of Fed's decision, Tories vote.
The USD/JPY pair held within familiar levels around 108.60 this Monday, unable to attract investors and confined to a 20 pips' range. US government bond yields ticked lower although the decline was irrelevant, with the benchmark yield for the 10-year Treasury note finishing the day around 2.08%. Stocks worldwide struggled for direction, finishing the day not far from their opening levels, amid the absence of a catalyst and the usual wait-and-see stance ahead of the Fed's monetary policy decision later this week. In the data front, Japan didn't release relevant data at the beginning of the week and has nothing scheduled for this Tuesday.
From a technical point of view, the pair continues in consolidative mode, hovering around the 38.2% retracement of the 109.92/107.81 slide, unable to settle above the level. In the 4 hours chart, technical readings offer a neutral stance, with the price trapped between moving averages, holding above a flat 20 SMA but below a bearish 100 SMA. Technical indicators in the mentioned chart hold right above their mid-lines, lacking directional strength.
Support levels: 108.30 108.05 107.85
Resistance levels: 108.90 109.20 109.50
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