USD/JPY analysis: holding above 110.00 but bulls hesitate

Valeria Bednarik FXStreet

USD/JPY Current price: 110.45

Tokyo inflation for June seen advancing modestly, still below BOJ's desired 2.0%.
US Treasury yields stabilized near weekly lows, equities trying to find their north.

The USD/JPY pair is up for a third consecutive day but was unable to extend its gains beyond the weekly high posted Wednesday at 110.48, ending nearby amid the late advance in Wall Street. The upside, however, was limited by steady US Treasury yields, which spent the day hovering around Friday's closing levels. Worldwide indexes hovered around their opening levels, with the exception of the German DAX, which plunged amid concerns on carmakers performance after Trump's latest decision on tariffs. In Japan, May Retail Sales disappointed big, falling for the most in two years, down 1.7% monthly basis and by 2.0% when compared to a year before, a sign of shrinking consumer spending. Early Friday, the Asian country will release June Tokyo inflation, seen improving from May but still far below BOJ's desired 2.0%, Industrial Production and Unemployment figures. Technically, the pair is close to the mentioned weekly high, pressuring a resistance area, and the 4 hours chart presents a neutral-to-positive stance, although the buying interest seems to have somehow decreased, as it has stabilized above a key Fibonacci level and its 100 and 200 SMA, while technical indicators have lost directional strength, now stable within positive readings.

Support levels: 110.15 109.90 109.60

Resistance levels: 110.45 110.85 111.35

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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