USD/JPY analysis: pulling back from 111.00, still bullish
|USD/JPY Current price: 110.75
- Japan trade figures to be out at the beginning of the day.
- US Treasury yields and equities will continue leading the way for USD/JPY.
The USD/JPY pair closed the week with gains and at its highest since last January, retreating, however, on Friday from the high set at 111.07. The pair followed the lead of US Treasury yields, which reached fresh multi-year highs early Friday but retreated ahead of the close. The yield on the US 10-year Treasury note hit 3.128%, to finally settle at 3.06%. The USD/JPY rally was limited by equities, which plummeted at the beginning of the week, and despite recovering some ground later, were unable to finalize the week in the green. At the beginning of the week, Japan will release its trade balance data for April, although the reaction of equities and yields to US-China trade war headlines will probably lead the way. Technically the daily chart shows a doji from Friday, which may be the first sign of upward exhaustion. The same chart, however, shows that the pair closed above its 200 DMA, currently at 110.20, for the first time since January 10, while technical indicators remain well into positive territory, although easing, supporting at least a downward corrective movement ahead. In the 4 hours chart, technical indicators retreated from overbought readings but stabilized well above their mid-lines as the pair keeps developing above bullish 100 and 200 SMA, indicating that any decline will likely remain corrective as long as the pair remains above the 109.60 level.
Support levels: 110.45 110.00 109.60
Resistance levels: 111.10 111.60 112.00
View Live Chart for the USD/JPY
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.