USD/JPY analysis: US-yields keep driving the way
|USD/JPY Current price: 112.14
The USD/JPY pair fell down to 111.93 on Friday to settle a few pips above the 112.00 level, undermined by plummeting US Treasury yields and a soft tone in equities all through the day. Asian and European ones closed in the red, while US indexes managed to post marginal gains, after being under pressure for most of the session. Tepid US data, with worse-than-expected US New Home Sales and Michigan Consumer Confidence, also weighed on the pair. Yields closed at their lowest levels for the year, with the 10-year not benchmark down to 2.32% and the 30-year note yield falling to 2.96% from previous 3.02%. In the daily chart, the price has closed the day below its 100 DMA for the first time since early October, whilst the RSI indicator heads south around 40. The Momentum indicator, however, remains flat around its 100 level, whilst the pair has bottomed this February around 111.60, meaning that it will take a break below this last to confirm a bearish extension. In the 4 hours chart, the price is well its moving averages, whilst the Momentum indicator heads south at 1-week lows and the RSI consolidates around 30, in line with the longer term technical outlook.
Support levels: 111.90 111.60 111.20
Resistance levels: 112.50 113.00 113.45
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