USD/JPY Forecast: Battling to recover the 109.00 threshold
|USD/JPY Current Price: 109.01
- Japanese dismal data revived concerns about the country’s economic health.
- Investors are cautious amid US-China trade deal uncertainty.
- USD/JPY short-term neutral, additional slides could be considered corrective.
The USD/JPY pair is trading lower in range, hovering around the 109.00 level ahead of the Asian opening. The pair started the day losing some ground, although the daily low was set at 108.89, from where it slowly recovered. The market was generally cautious amid the absence of first-tier releases and uncertainty surrounding the US-China trade deal, with equities giving up strongly, but government debt yields retaining last week’s gains.
Japanese data released came in below the market’s expectations, as September Machinery Orders fell by 2.9% MoM against a 0.9% advance expected, and were up by 5.1% when compared to a year earlier, against the 7.9% forecast. The Trade Balance in the same month posted a modest ¥1.1 B surplus, far below the ¥705 B expected. Also, the Eco Watchers survey on the current situation plummeted to 36.7. The dismal numbers revived concerns about the economic health of the country. This Tuesday, the country will release October Money Supply.
USD/JPY short-term technical outlook
The USD/JPY is offering a neutral-to-bearish stance in its 4-hour chart, as it spent the day just below a flat 20 SMA, while the Momentum indicator turned south within negative levels. The pair is above directionless 100 and 200 SMA, while the RSI consolidates around 48, indicating limited selling interest. The pair could extend its short-term decline on a break below 108.90, while it would need to advance beyond the 109.30 level to shrug off the negative stance.
Support levels: 108.90 108.65 108.40
Resistance levels: 109.30 109.60 110.00
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.