USD/JPY analysis: recovery fell short of breaking relevant levels
|USD/JPY Current price: 111.23
- USD broad's strength and easing risk aversion helped the pair bounce.
- Short-term bullish as long as the positive sentiment persists.
The Japanese currency eased as fears eased, with the USD/JPY pair surging above the 111.00 figure in the US afternoon, backed by Wall Street's recovery and firmer US Treasury yields. The yield on the benchmark 10-year Treasury note was higher, at 2.89%, hovering around this last for most of the US session. Data coming from Japan was mixed, as Industrial Production fell by less than expected in June, dropping 1.8% MoM vs. a forecasted decline of 2.1%, while yearly basis, the figure resulted at -0.9% vs. market's expectations of -5.0%. Capacity Utilization, however, posted a 2.2% drop, against a flat reading forecasted. The Japanese macroeconomic calendar will remain empty this Wednesday. The pair's appreciation fell short of breaking a relevant level, as risk-aversion may have eased, but political turmoil worldwide prevails. In the 4 hours chart, the pair is currently struggling around a directionless 100 SMA with the 200 SMA also heading nowhere a few pips above the current level, although technical indicators maintain their upward slopes at fresh weekly highs and well into positive territory, somehow anticipating another leg higher for this Wednesday.
Support levels: 110.50 110.20 109.80
Resistance levels: 111.30 111.60 111.90
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.