USD/JPY analysis: dollar recovers some poise at the end of the day

Valeria Bednarik FXStreet

USD/JPY Current price: 112.74

USD/JPY nears 112.86, the two-month high set last week.
BOJ to publish its latest meeting's Minutes, Kuroda to offer a speech.

The USD/JPY pair is modestly up this Monday, around 112.70. Multiple holidays in major Asian economies kept the pair ranging at the beginning of the day, while risk-aversion was responsible for the lack of action during the last trading session of the day. US Treasury yields post modest intraday advances but remained below the 5-month highs posted last week, consolidating gains and just providing mild support to the pair, despite falling equities. Following a long weekend, the Japanese macroeconomic calendar will offer August Corporate Service Price Index, the latest BOJ's Meeting Minutes and revisions for July Leading and Coincident indexes.

The pair heads into the Asian session at the upper end of its daily range, not far from 112.86, the two-month high set last week. In the 4 hours chart, the pair is well above bullish 100 and 200 SMA, while technical indicators remain within familiar levels, the Momentum heading lower and the RSI higher, both well above their midlines, favoring additional gains on a break above the mentioned 112.86, now the immediate resistance. The next one comes at 113.17, July monthly high. 112.45, on the other hand, is the immediate support ahead of 112.14, August monthly high.

Support levels: 112.45 112.15 111.80

Resistance levels: 112.85 113.20 113.50

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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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