USD/JPY Forecast: Losing strength upward, bearish only below 109.00
|USD/JPY Current Price: 109.74
- Safe-haven assets eased amid the better performance of global equities.
- Japan to release the preliminary estimate of January Machine Tool Orders.
- USD/JPY failed again to surpass the 110.00 level, ends the day with modest gains.
The USD/JPY pair closed unchanged this Tuesday, nearing again the 110.00 threshold but unable to surpass it and settling around 109.80. Demand for the safe-haven yen was absent amid the better performance of global indexes and recovering US government bond yields. The yield on the benchmark 10-year Treasury note rose to 1.59%, further underpinned during the American session by Fed’s Chief Powell words, as he said that the US economy y appears “resilient” to global woes.
Japan will release this Wednesday, January Money Supply M2 and the preliminary estimate of Machine Tool Orders for the same month, previously at -33.6%.
USD/JPY short-term technical outlook
The USD/JPY pair is technically neutral, according to the 4-hour chart, as it has spent the day hovering around a directionless 20 SMA, which holds above the larger one, also directionless. Technical indicators continue to lack directional strength, the Momentum indicator stuck around its 100 level since last week and the RSI is easing from its highs, currently at around 57. The risk is skewing to the downside, although the pair would need to break below 109.00 to become bearish.
Support levels: 109.40 109.00 108.65
Resistance levels: 110.00 110.35 110.70
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