USD/JPY Forecast: Holding on to gains but lacking momentum
|USD/JPY Current Price: 109.16
- Japanese yen weakened on the back of the better market mood.
- Easing dollar’s demand capped the upside for the pair.
- USD/JPY could gather upward momentum on a break above 109.40.
The USD/JPY pair traded as high as 109.38 this Monday, underpinned by the positive momentum of global equities and recovering in government bond yields. The market’s mood improved amid signs of a flattening contagion curve in Europe and New York. The figures, however, are still outrageous and the crisis is far from over. Nevertheless, global equities surged, with US indexes adding over 5.0% each. US Treasury yields also recovered, with the yield on the benchmark 10-year note surging to 0.68% and settling not far below this last.
In the data front, Japan released at the beginning of the day, March Consumer Confidence, which resulted at 30.9 from 38.4 in February. The US won’t release relevant data today. The country will publish this Tuesday earnings and spending figures, and the preliminary estimate of the February Leading Economic Index, foreseen at 90.4 from 90.5 in the previous month.
USD/JPY short-term technical outlook
The USD/JPY pair has briefly surpassed the 23.6% retracement of its latest daily advance, having spent most of the American session just below the level. The short-term picture skews the risk to the upside, as, in the 4-hour chart, the pair is above all of its moving averages, while technical indicators hold within positive levels, although lacking directional strength. The pair would be better poised to extend its advance on a break above 109.40, the immediate resistance.
Support levels: 108.70 108.25 107.90
Resistance levels: 109.40 109.80 110.15
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.