USD/JPY analysis: bearish trend firm in place

Valeria Bednarik FXStreet

USD/JPY Current price: 111.88

The USD/JPY pair closed the day pretty much flat, right below the 112.00 level, having extended its weekly decline down to 111.47 in the US afternoon. The pair surged up to 112.41 at the beginning of the day, following the Bank of Japan monetary policy meeting. Policymakers left rates unchanged as expected, while maintained the focus on controlling the curve-yield. Additionally, they raised the economic growth forecast, but pushed back the timing of reaching its 2% inflation target to the 2019 fiscal year, the sixth time they delayed it since Kuroda leads the central bank. The pair bounced from the mentioned low as US Treasury yields trimmed their earlier decline after a poor 10-year note auction, but the bearish stance remains strong, as the early advance met selling interest around the 38.2% retracement of the latest bullish run, with the pair anyway, unable to confirm a break below 111.60, the 50% retracement of the same rally. In the 4 hours chart, the price is once again struggling with its 200 SMA, while technical indicators are recovering modestly within bearish territory and below their previous daily highs, not enough to support additional gains ahead.

Support levels: 111.60 111.20 110.90

Resistance levels: 112.35 112.70 113.10

View Live Chart for the USD/JPY

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.

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