USD/JPY analysis: short-term buying interest defending 111.00
|USD/JPY Current price: 111.21
- Yen gain on USD weakness, u-turn in Wall Street.
- US Treasury yields retreated from weekly highs just modestly.
The USD/JPY pair fell to 111.11 during US trading hours, partially weighed by soft US data and partially due to plummeting equities, as despite Wall Street's soared on US-China headers, the major indexes trimmed daily gains and entered into negative territory. US Treasury yields added to the bearish case of the pair, retreating modestly from their weekly highs, although the decline there is not enough to justify USD/JPY retracement. At the beginning of the day, Japan released the third-quarter BSI large manufacturing index, which rose to 6.5, following a -3.2 previously, although below the market's expectations of 8.0. The country will release August Domestic Corporate Goods Price Index, and July Machinery Orders at the beginning of the day.
Technically, the pair faltered at the upper end of its latest range, holding above the 111.00 level and, in the 4 hours chart, above its 100 and 200 SMA, both converging within a tight 10 pips range. Technical indicators in the mentioned chart have turned sharply lower, with the RSI already within negative territory, currently at 46, supporting additional declines ahead. The 110.90 region is the immediate support, with a break below if opening doors for a steeper decline toward the 110.20/30 region.
Support levels: 110.90 110.65 110.25
Resistance levels: 111.45 111.80 112.15
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.