USD/JPY: nearing top of the range at 110.89
|USD/JPY Current price: 110.58
- Better inflation and employment Japanese figures gave BOJ some hopes.
- US PCE inflation and Michigan Consumer Sentiment Index up next.
The USD/JPY pair neared the top of the last three-week range at 110.89, amid improved market mood, this time, related to headlines coming from the EU, as the 28 leaders of the Union, including the UK, worked around a solution on the migration issue. Positive data coming from Japan adds to the better sentiment, with Tokyo inflation up in June by more than expected, up 0.6% vs. the previous 0.4% or the expected 0.5%, while the unemployment rate fell to 2.2%, the lowest level since 1974. This last points to a stronger upward pressure on wages and could mean higher inflation in the near future. May Industrial Production fell by less-than-expected, -0.2% when compared to April, with the annual reading soaring to 4.2%.
The good mood, however, begun easing on headlines indicating that President Trump wants to withdraw the US from the World Trade Organization, against his advisors´ assessments. The USD/JPY pair trades some 20 pips below a daily high of 110.78, ahead of US PCE inflation for May, and the Michigan Consumer Sentiment Index for June.
The 4 hours chart for the pair shows that it maintains its mild bullish stance, as it is developing above directionless 100 and 200 SMA, while technical indicators hold within positive levels, the Momentum aiming modestly higher and the RSI heading nowhere around 58. Further gains beyond 110.90 expose the 111.40 region, where the pair topped last May. Below 110.15, on the other hand, the risk turns back south but it would take a break below 109.90 to actually see the pair gaining bearish traction.
Support levels: 110.15 109.90 109.50
Resistance levels: 110.90 111.40 111.75
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.