USD/JPY analysis: neutral for the day ahead of Japanese inflation
|USD/JPY Current price: 111.02
The USD/JPY pair closed the day pretty much flat around the 111.00 figure, having lost upward momentum after advancing up to 111.31 at the beginning of the day. Data coming from Japan disappointed, as retail sales rose less-than-expected in February, signaling that consumer spending still lags. Retail Sales rose by 0.1% when compared to an year earlier, well below the 0.7% advance expected, while when compared to January, it rose by 0.2%. The country will release its latest National and Tokyo inflation during the upcoming Asian session, expected anyway to remain subdued. As usual lately, yen's strength was backed by a weaker US Treasury yields that reversed most of their Tuesday's gains. The intraday outlook for the pair is modestly positive, given that in the 4 hour chart, the Momentum indicator holds within positive territory with no certain directional strength, whist the RSI indicator aims modestly higher around 51. In the longer run, however, the upward potential seems limited as in the same chart, the price is well below its moving averages. The bearish strength may ease on a recovery above 112.00, but it will take an extension beyond 114.50, too far away at this point, to talk about a bullish USD/JPY.
Support levels: 110.95 110.50 110.10
Resistance levels: 111.60 112.00 112.50
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