USD/JPY Analysis: still poised to extend its advance
|USD/JPY Current Price: 108.72
- US Treasury yields ticked lower amid poor local data spurring recession concerns.
- Japan’s macroeconomic calendar to remain empty for a second consecutive day.
- USD/JPY fundamental bullish potential backed by technical readings.
The USD/JPY pair was unable to attract investors throughout the last few sessions, having spent Wednesday hovering between 108.60 and 108.80. The pair is ending the day with modest losses, weighed by lower Treasury yields and the poor performance of equities. Yields edged lower amid dismal US data and uncertainty surrounding a US-China trade deal. Stocks traders, on the other hand, remained side-lined ahead of some clearer news, with major worldwide indexes moving back and forth around their opening levels. Optimism surrounding Brexit, however, kept the pair afloat. In the data front, the Japanese macroeconomic calendar has nothing relevant to offer this Thursday.
USD/JPY short-term technical outlook
The USD/JPY pair is trading just a few pips below the weekly high achieved Tuesday at 108.89, maintaining the short-term positive stance, as it spent the day at the upper half of its previous daily range. In the short-term, and according to the 4 hours chart, the risk remains skewed to the upside, as the pair is developing above all of its moving averages, and with the shortest well above the larger ones. The Momentum indicator advances modestly within positive ground, while the RSI consolidates just below overbought readings, also supportive of additional gains ahead.
Support levels: 108.60 108.20 107.95
Resistance levels: 109.00 109.35 109.60
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