USD/JPY analysis: unable to react to peripheral markets' clues
|USD/JPY Current price: 107.25
- Japan to release National inflation figures this Friday, no big surprises expected.
- Firmer US data and rising treasury yields offset by a sharp decline in equities.
The USD/JPY pair traded as high as 107.51 at the beginning of the day, and hold on to gains for most of the past sessions, backed by rising US Treasury yields. The sour tone of US equities, however, offset the positive clues coming from the bond market, as longer-term yields neared yearly highs, keeping the upside limited for the pair. Despite holding above 107.00, the USD/JPY pair has been in a steady consolidative phase pretty much since the month begun, and while the downward pressure clearly eased, bulls are not yet ready to jump back in. There were no relevant macroeconomic releases in Japan, but US data was generally encouraging, not enough, however, to beat the cautious mood of USD/JPY traders. During the upcoming Asian session, Japan will release its National March inflation figures, seen in-line with previous readings and hardly a game changer for the BOJ. The 4 hours chart, shows that the pair is holding above a daily ascendant trend line coming from April's low at 106.65, also developing above bullish moving averages, but with technical indicators gaining downward traction around their mid-lines, overall maintaining upside limited rather than favoring a downward move.
Support levels: 107.10 106.80 106.50
Resistance levels: 107.50 107.85 108.20
View Live Chart for the USD/JPY
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