USD/JPY analysis: bullish case firmer if above 108.60
USD/JPY Current price: 108.33
- Dollar backed by upbeat Retail Sales, US-Iran truce.
- US Treasury yields advanced to fresh three-week highs.
- USD/JPY up for the day, but still contained within familiar levels.
The USD/JPY pair has surged int the US session to reach a weekly high of 108.37, backed by renewed dollar’s demand following the release of better-than-expected US Retail Sales, also by headlines indicating that the US and Iran could start negotiating about the latest missile program, according to US Secretary Pompeo, diminishing the risk-averse sentiment that dominated the first half of the day. US Treasury yields tick higher with the news, with the yield on the benchmark 10-year note peaking at 2.14% to finally settle around 2.12%. Japan didn’t release macroeconomic figures so far this week, and the calendar will also remain empty this Wednesday.
USD/JPY short-term technical outlook
The USD/JPY pair has recovered up to the 50% retracement of its latest daily slide at 108.38 but remains within familiar levels. In the 4 hours chart, the pair has settled above all of its moving averages, which remain directionless and confined to a tight range, reflecting the lack of directional conviction. Technical indicators in the mentioned chart recovered up to their mid-lines, losing upward strength around them. The pair peaked last Friday at 108.60 the level to surpass to build a more solid bullish case in the upcoming sessions.
Support levels: 108.05 107.70 107.35
Resistance levels: 108.60 108.95 109.20
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.
