USD/JPY analysis: neutral-to-bullish, 114.50 key but far away
|USD/JPY Current price: 113.38
- Treasury yields closed the week with gains amid easing tensions between China and the US.
- USD/JPY, upside capped by fears of a global economic slowdown.
The USD/JPY pair held on to early weekly gains, finishing it not far below the high set Thursday at 113.70. The pair eased modestly Friday, as US Treasury yields trimmed part of their weekly gains, anyway finishing it with gains amid relief news regarding the US-China trade war, which dented demand for safe-haven government bonds. The 10-year Treasury note yield fell to 2.89%, down for the day 2 basis points. Adding to yen's limited strength was another bad day on Wall Street, as US traders were spooked by Chinese and European poor data that fueled fears of a global economic downturn. There's no data scheduled in Japan for this Monday.
The pair has been struggling for direction for over a month already, with the downside well-limited but no follow-through beyond the 114.50 price zone, where the pair topped early October. The daily chart shows that technical indicators have lost upward momentum, heading lower in neutral territory, falling short of indicating a bearish extension, moreover considering that the pair has bounced several times from a bullish 100 DMA, currently at 112.40. Shorter term and according to the 4 hours chart, the technical picture is neutral, as the pair bounced modestly from directionless and converging moving averages, as technical indicators head nowhere around their midlines.
Support levels: 113.10 112.90 112.55
Resistance levels: 113.70 114.00 114.40
View Live Chart for the USD/JPY
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