USD/JPY Current price: 113.45
Japan preliminary Q3 GDP expected at 0.3% QoQ.
Yen strengthens on negative market's mood.
The USD/JPY pair turned lower after failing to regain the 114.00 level, closing in the red for a second consecutive day but above Monday's low of 113.24. As usual, the Japanese currency benefited from the softer tone in equities and US yields, as Wall Street turned lower this Tuesday, following the lead of its overseas counterparts, while US Treasury yields edged lower with the 10-year note benchmark down to 2.38% from previous 2.40%. Japan is set to release its preliminary Q3 GDP during the next Asian session, with the economy forecast to have grown 0.3% in the quarter, against previous 0.6%. Later in the day, Japan will release revisions of September´s Industrial Production data. The pair maintains a neutral stance short-term, although the risk has leaned towards the downside after repeated failures to overcome the 114.40 long-term resistance level. In the 4 hours chart, the price remains well-limited between horizontal moving averages, with the 200 SMA acting as a dynamic support around 113.10, where the pair also bottomed last week. In the same chart, the Momentum indicator is stuck around its mid-line, but the RSI heads south around 43, favoring a bearish extension for the next sessions.
Support levels: 113.10 112.85 112.50
Resistance levels: 114.05 114.40 114.85
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