USD/JPY analysis: bullish towards 110.00 first, 111.50 later
USD/JPY Current price: 108.88
The USD/JPY pair traded as high as 109.05 this Tuesday, a fresh 5-month high, fueled this time by the upward surprise in US data. Not only October retail sales beat expectations, but also, the New York Empire State manufacturing index advanced to 1.5 in November, following a 6.8 decline in October, which was the third consecutive monthly decline. In addition, October Export prices rose 0.2% MoM and Import prices gained 0.5% MoM, this last, beating market's expectations. The pair is on track to challenge the critical psychological benchmark of 110.00 and even break beyond it, towards 111.50, May's high. Technically and in the short term, the 1 hour chart shows that technical indicators have turned horizontal within positive territory, while the 100 SMA has extended its advance above the 106.60 key Fibonacci level, now holding around 107.10. In the 4 hours chart, the price is far above its moving averages that are slowly turning higher well below the current level, while the RSI indicator is flat around its 70 level, and the Momentum indicator lost upward strength, holding well above its mid-line, nothing actually indicating that the price may retreat from the current area.
Support levels: 108.55 108.10 107.70
Resistance levels: 109.05 109.40 109.90
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.
