USD/JPY analysis: trapped between stocks' rally and yields' retracement
|USD/JPY Current price: 113.86
The USD/JPY pair extending its consolidative phase around the 114.00 level, unable to react to worldwide stocks, with European benchmarks establishing fresh yearly highs and Wall Street running to all-time records. Yields, however, fell this Wednesday, with the 10-year note benchmark at 2.35% from Tuesday's 2.39%, putting the pair up against the top. The pair has drawn a potential double top around 114.80, but remains above the neckline of the figure, which stands at 112.86, December 4th low. The figure has a 200 pips' height, establishing a probable bearish target at 110.80 in the case of a bearish breakout. In the short term, the 1 hour chart shows that the price is trading between its 100 and 200 SMAs, bottoming around this last for the day at 113.41, while technical indicators have recovered from near oversold readings, but turned flat within negative territory. The 100 SMA in the mentioned time frame stands flat around 114.00, converging with the 23.6% retracement of the 2011/15 rally. In the 4 hours chart, the price is well above a bullish 100 SMA, the Momentum indicator heads modestly lower below its mid-line, and the RSI turned higher, now around 51, failing to provide clear clues on what's next for the pair.
Support levels: 113.60 113.15 112.80
Resistance levels: 114.20 114.55 114.90
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.