USD/JPY analysis: Slow recovery brings doubts
|USD/JPY Current price: 109.19
The yen ended the week mostly lower in the market, with no significant variations. Modest weekly gains in equity markets, a small rise in US yields and no new geopolitical worries lowered the demand for the yen. The fundamental perspective still shows concerns and despite a rally in Wall Street on Thursday, the short-term trend in equity prices remains to the downside. Next week, US data could have a more significant impact, also US President Trump could make some announcements.
The USD/JPY pair posted minor gains and the bullish correction could continue. Still, the dominant trend favors the yen. On a wider perspective that would change with a break above 113.50, that level, for the moment is out of reach. A correction on top of 110.10 could give more strength to the US dollar. To the downside, the pair has strong supports around 107.70: a break of that area could trigger an acceleration to the downside, boosting the yen across the board.
Support levels: 108.70 108.30 108.10
Resistance levels: 109.50 110.10 110.40
View Live Chart for the USD/JPY
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