USD/JPY analysis: next big hurdle at 111.60
|USD/JPY Current price: 111.08
The USD/JPY pair fell down to 110.17, but surged up to 111.18 in the US afternoon, as the Dow Jones Industrial Average posted a three digit advance following an eight consecutive days' decline while US Treasury yields recovered further, with the 10-year note benchmark up to 2.41% after flirting with 2.36% on Monday. A strong advance in US March consumer confidence, kick started the recovery of USD-related assets, as the index surged to its highest in over 16 years, reaching 125.6 from 116.1 in February. The recovery has turned the short term picture bullish, as in the 1 hour chart, the price is advancing above its 100 SMA for the first time in over two weeks, while technical indicators head sharply higher near overbought readings, after flirting with oversold levels at the beginning of the day. In the 4 hours chart, technical indicators have turned sharply higher, with the Momentum and the RSI entering positive territory, but the price still developing well below its 100 and 200 SMAs. The pair has a major resistance at 111.60, where selling interest will likely reappear.
Support levels: 110.95 110.50 110.10
Resistance levels: 111.60 112.00 112.50
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