USD/JPY analysis: up for the day, flat for the week.
|USD/JPY Current price: 110.50
- USD/JPY remains unable to enter positive ground weekly basis, looking bearish short-term.
- US Treasury yields hold near Tuesday's closing levels, giving little clues to JPY traders.
The USD/JPY pair advanced modestly this Wednesday, with gains being a consequence of easing risk aversion rather than anything else. The pair settled around 110.50, up for a second consecutive day but flat weekly basis, despite the softer tone of equities and yields that should have favored the Japanese currency. In the data front, Japan released the June All Industry Activity Index, which resulted worse-than-expected, printing -0.8% vs. the expected -0,7%, while US data disappointed too, with Existing Home Sale falling by 0.7% in July. During the upcoming Asian session, Japan will release the June Leading Economic and Coincident Indexes, seen little changed from the previous estimates. The preliminary August Nikkei Manufacturing PMI will also be out, expected at 52.4 from the previous 52.3. The upward potential seems limited, as US Treasury yields remained subdued, with the benchmark of the 10-year note at around 2.82%, unchanged from Tuesday's close. The pair once again was unable to surpass the 100 DMA but continues to pressure the indicator. Shorter term, and according to the 4 hours chart, the pair presents a neutral-to-bearish stance, as technical indicators continue lacking directional strength around their midlines, as the price develops below its 100 and 200 SMA.
Support levels: 110.10 109.80 109.50
Resistance levels: 110.70 111.10 111.50
View Live Chart for the USD/JPY
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