USD/JPY: Yen refuses to give up
|USD/JPY Current price: 113.99
The USD/JPY pulled back once again from the 114.30 region tested overnight, struggling now around 114.00, despite strong US data. The Japanese yen seems to be playing a different game, stronger as equities and yields trade in the red. Nevertheless, the downward potential is limited, with the market now lifting bets on a Fed rate hike next June after US PPI rose more than expected in April, while unemployment claims fell to their lowest in 28 years in the week ending May 6th. From a technical point of view, the pair seems to be developing a double top, with the neckline of the figure being the immediate support at 113.60, while the upward potential fades, given that in the 4 hours chart, technical indicators have extended their decline within negative territory. In the same chart, 100 and 200 SMAs maintain their bullish slopes far below the current level, suggesting that in the longer run, the possibility of a steeper decline is well-limited. To the upside, the pair needs to break a strong Fibonacci resistance around 114.50, to shrug off the negative tone and be able to resume its bullish trend.
Support levels: 113.60 113.20 112.80
Resistance levels: 114.10 114.50 114.90
View Live Chart for the USD/JPY
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