USD/JPY: bulls making hard work in critical space on 107 handle
|- USD/JPY: sandwiched between key support and resistance.
- USD/JPY: markets move on, despite Syria risk, DXY on the backfoot.
USD/JPY is making hard work of the upside through 50 on the 107 handle and has started to consolidate once again around a swing high level, above the 100-he SMA and now moving sideways through the ascending support line. Currently, USD/JPY is trading at 107.25, down -0.09% on the day, having posted a daily high at 107.61 and low at 107.13. The DXY is under pressure with risk on, - 0.31% on the day, although US yields remain elevated at 2.8469%, +0.71% so far. (US Retail Sales beat expectations on the headline with 0.6% but a downside revision on the Control Group worsened the picture. Another disappointing number came in the New York area manufacturing this month after the strong number last month, 15.8 versus 18.4 expected, 22.5 prior).
USD/JPY is well and truly sandwiched by the descending daily support, once resistance around the 100hr SMA at 107.18 and the recent highs of 107.77. The pair is tracking the US stocks and the equity markets seemed to have shrugged off the Syria risk and weekend news.
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British Prime Minister Theresa May is addressing the UK parliament after joining France and the US in airstrikes against Syria saying that diplomatic action alone is not going to work and explaining that the attack was necessary and proportional to the aim of relief to humanitarian suffering as a legal justification. This is positive for markets as it justifies the attack before OPCW assessments and UN approval on a legal basis and should mean business as usual without further uncertainties unless Russia retaliates in some form or another. Stocks are positive and the yen remains on the back foot albeit slightly firmer on the day.
USD/JPY levels
USD/JPY bulls got through the 107.52 level as being 50% of the 110.48-104.56 that recently capped on the upside. Eyes are on the cloud top at 109.32 on closes above recent aforementioned resistance.
The daily stick's range has held on higher grounds and above the 1st daily range above 55-DMA/cloud base. Eyes are on 108 as a breakout area.To the downside, the 106.00 is key and the 2018 low is at 104.63 as another important support. 104.20 gives way to a downside measured target of 102.58, guarding a run to 101.19/99.00 as the June-to-November 2016 lows ahead of 100.70/99.00.
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