USD/JPY Forecast: Upside limited, but still yield-dependent
|USD/JPY Current price: 112.37
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Upside limited, but still yield-dependent. The USD/JPY pair fell down to 111.91 at the beginning of the day, surpassing Friday's one by a couple of pips, but traded some pips above the 112.00 figure for most of the day, as investors waited for US data. The pair spiked up to 112.48 on US Durable Goods Orders headline, but retreated as the core reading disappointed. Given that the dollar is broadly weak, seems unlikely the pair will advance further, although the upcoming direction will depend on yields' movements rather than anything else. Technically, the 1 hour chart shows that the 100 and 200 SMAs have gained downward strength well above the current level, while the RSI indicator holds around 50 and the Momentum bounces from its 100 level, still holding below previous daily highs. In the 4 hours chart, indicators have posted modest recoveries from oversold levels, but remain well below their mid-lines, while the price remains far below the 100 and 200 SMAs, indicating that the upward potential remains well-limited.
Support levels: 111.95 111.60 111.20
Resistance levels: 112.50 112.90 113.30
Interested in USD/JPY technicals? Check out the key levels
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