USD/JPY analysis: flat below 112.00 on soft yields

Valeria Bednarik FXStreet

USD/JPY Current price: 111.80

The USD/JPY pair remains directionless below the 112.00 level, confined to a 50 pips range this Thursday, amid the limited volatility of US Treasury yields. Despite US stocks continued advancing, with some indexes trading at all-time highs and the rest not far below, the pair is unable to rally, contained by continued dollar's weakness. Japan is due to release its National and Tokyo CPI figures during the upcoming Asian session, although it may have limited effects over yen crosses, unless a surprise strong uptick in inflation, in which case, the yen could appreciate in anticipation of BOJ's considering tapering. The US will release the second revision of its Q1 GDP and April Durable Goods Orders this Friday that will also need to surprise to help the dollar advance. Technically, the 4 hours chart shows that the price remains midway between its 100 and 200 SMAs, both horizontal, while right below the 38.2% retracement of the latest bullish run around 1.1200. In the same chart, technical indicators have lost upward strength, but hold within positive territory, limiting chances of a strong decline, at least as long as the price holds above 111.60.

Support levels: 111.60 111.20 110.85

Resistance levels: 112.00 112.45 112.90

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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