USD/JPY analysis: eyeing Japanese employment and sales data
USD/JPY Current price: 111.30
The USD/JPY pair was unable to move this Monday, holding around its Friday's close of 111.33 for the past 24 hours, as multiple holidays across the world kept the most relevant markets closed. China will extend its holidays into this Tuesday, but the rest of the Asian markets will be active. Japan will release its April unemployment and retail sales data, expected to have improved modestly from March figures. Better-than-expected figures should favor additional gains in the JPY, as firmer macroeconomic data will support the beginning of the end for easing in the country. Still, and in the short term, yields will likely remain as the main motor. From a technical point of view, the pair has made little progress, comfortably consolidating around the 50% retracement of its latest bullish run and below its moving averages in the 4 hours chart, in where technical indicators head marginally lower within bearish territory, lacking momentum amid the absence of volume. A strong support comes at 110.85, with a break below it favoring a stronger slide towards the 110.00 region.
Support levels: 110.85 110.50 110.10
Resistance levels: 111.65 112.00 112.45
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.
