USD/JPY: heading north above 110.00, eyeing 111.40
|USD/JPY Current price: 110.20
- Economic growth imbalances are keeping the USD rising against most rivals.
- USD/JPY at fresh yearly highs and short-term bullish now, as long as 110.00.
The dollar started the week with a strong footing, appreciating against most of its major rivals. The USD/JPY pair reached fresh 2019 highs of 110.28, trading not far below this last, as the downgrades of this year´s growth forecast in different major economies, has lean the scale in favor of the US, where things are no bright but much better than in Europe or Asia. There was a holiday in Japan this Monday, with no data coming from the country. Attention centered on equities, which traded mixed, and government bond yields, which remain depressed amid concerns about the global economic slowdown. Meanwhile, the US-China trade talks that took place last week ended without nothing to report, and are set to resume this week. There are no relevant events scheduled in the US, although it is possible that the country releases today the delayed Q4 Unit Labor Costs, foreseen up by 1.7% following a 0.9% advance in the previous quarter.
Given that the pair is some 15 pips above the top of the range that contained it for the last weeks, the upward momentum is limited in the short-term, although bullish according to the 4 hours chart, with the former yearly high at 110.16 being now the immediate support. In the mentioned chart the price keeps advancing above moving averages which lack directional strength, anyway with the shorter above the larger one. The Momentum indicator is barely bouncing from its mid-line, but the RSI heads firmly up at around 68. The next short-term resistance comes at 110.47, December 31 high, with gains beyond it favoring an approach to the 111.00 figure. Should the pair extend its advance beyond this last, the next relevant bullish target comes at 111.40.
Support levels: 110.15 109.85 109.40
Resistance levels: 110.45 110.90 111.20
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