USD/JPY analysis: poised to correct lower, but overall bullish
|USD/JPY Current price: 110.68
The USD/JPY pair reached an over 1-month high of 111.03 right after the release of better-than-expected US inflation and employment data, but trimmed its post-news gains as fast as it made them, settling in the 110.60 area, up for a fourth consecutive day. A sour tone in European equities undermined dollar's gains against its safe-haven rival, but rising US yields kept the pair afloat, although long-term bond yields eased, as behind the positive US inflation headline, there were some worrisome figures, including adjusted wages falling by 0.3% within the month. The 10-year note yield is flat around 2.20% at the end of the day, while the benchmark for the 30-year note ticked lower to 2.79% from 2.80%. From a technical point of view, the pair seems poised to correct lower, although the overall bullish stance prevails, as in the 4 hours chart, the price is well above its 100 and 200 SMAs, which slowly gain upward strength, while the Momentum indicator retreats strongly within positive territory, as the RSI pulls down from overbought readings.
Support levels: 110.25 109.70 109.35
Resistance levels: 111.05 111.50 111.90
View Live Chart for the USD/JPY
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