USD/JPY: neutral-to-bearish stance persists, scope to 110.00
|Currently, USD/JPY is trading at 111.29, down -0.04% on the day, having posted a daily high at 111.48 and low at 111.16.
USD/JPY has moved into a sideways channel albeit within thin markets and the occasional 20 pip round turn drift; The UK and US are out on holiday. The broader tone is retained and markets will be looking ahead this week for signs that the US economy continues to move in the right direction for a June hike. As for Japan, the Asian session today holds the Japanese employment and sales data for April. "The Bank of Japan is expanding its balance sheet too, though not that the JPY80 trillion a year as had been the case. When stripped of food and energy, Japan is still not experiencing inflation," explained analysts at Brown Brothers Harriman.
USD/JPY levels
In the meantime, a neutral-to-bearish stance persists, with the price stuck around the 50% retracement of its latest weekly rally, explained Valeria Bednarik, chief analyst at FXStreet.
USD/JPY 4hr chart
"USD/JPY is developing below its moving averages in the 4 hours chart, and with technical indicators in the same time frame holding within negative territory," Bednarik noted arguing that it would take an unlikely acceleration beyond 111.60 to see the pair recovering further, although strong selling interest remains aligned around 112.00. "Below 110.85, on the other hand, the risk turns towards the downside, with scope then to test 110.00."
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