USD/JPY analysis: eyeing Nikkei manufacturing PMI

Valeria Bednarik FXStreet

USD/JPY Current price: 111.35

The USD/JPY pair closed flat for a second consecutive day in the 111.30 region, although daily basis, it posted a lower high and a lower low, indicating that the risk remains towards the downside. There were no major news coming from Japan this Thursday, while in the US, slightly weaker-than-expected weekly unemployment claims limit chances of dollar's gains. Claims in the week ended June 16th came in at 241K from a previously revised 238K. During the upcoming Asian session, Japan will release its June preliminary Nikkei Manufacturing PMI, expected to tick higher from May's figures. If that's the case that JPY may get an additional boost. In the meantime and from a technical point of view, the chart shows that the price has been contained below its 100 DMA ever since the week started, but also that the momentum indicator heads higher within positive territory, as the RSI stands flat around its mid-line. In the 4 hours chart the price is stuck around its 200 SMA, while technical indicators remain flat around mid-lines, giving no clear directional clues.

Support levels: 111.25 110.80 110.50

Resistance levels: 111.60 112.00 112.45

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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