USD/JPY analysis: bearish potential increases, but still missing confirmations
USD/JPY Current price: 112.35
The USD/JPY pair ended the day unchanged a handful of pips below the 112.50 level, having spent the last few sessions at the lower end of its weekly range, a few pips above the 112.00 level. A pullback in the Dollar index, which trimmed its gains from the past two weeks in these last three days, favored the safe-haven currency, alongside with retreating US Treasury yields. The yield of the key US 10-year benchmark tumbled to 2.33% level, but finally ended the day unchanged at 2.34%. The pair has been unable to define a clear direction for almost three weeks at the time being, and the only possible catalyst for this week are US macroeconomic releases scheduled for Friday, Retail Sales and CPI. The 4 hours chart for the pair presents a neutral stance, as technical indicators lack directional strength around their mid-lines, whilst the price is a few pips below its 100 SMA, but meeting buying interest on approaches to the 112.00 psychological threshold, also the 23.6% retracement of the September rally. Below this last, the pair will turn short-term bearish, with scope then to extend its decline towards the 111.60 price zone, en route to 111.20, this last a more likely bearish target for the upcoming sessions.
Support levels: 112.00 111.65 111.20
Resistance levels: 112.65 113.00 113.45
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
