USD/JPY Forecast: Upside still seen limited
|USD/JPY Current price: 113.65
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Upside still seen limited. The USD/JPY pair recovered some ground this Tuesday, trading not far from a daily high of 113.77, but the safe-haven currency is not ready to capitulate against its American rival, as high levels of political uncertainty remain in the background. The Japan flash manufacturing PMI expanded to 53.5 in February from 52.7 in January, the highest reading in almost three years. Also underpinning the positive sentiment among local investors. Technically, the upward potential is limited, as in the 1 hour chart, the price settled a handful of pips above its 100 and 200 SMAs, with the 100 SMA still heading south below the largest, while technical indicators have lost upward strength within positive territory. In the 4 hours chart, technical indicators head north within positive territory, but a bearish 100 SMA caps the upside around 113.90. Advances up to the 114.60 region are possible, but selling interest will probably reject advances around this last.
Support levels: 113.30 112.90 112.50
Resistance levels: 113.90 114.25 114.60
Interested in USD/JPY technicals? Check out the key levels
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