USD/JPY Current price: 109.79
- Japanese banks to remain closed amid a local holiday, little action foreseen this Monday.
- Risk-averse mood to extend into the weekly start.
The USD/JPY pair closed little changed and right below the 110.00 figure for a third consecutive week, as broad dollar's strength was a result of risk-averse factors that usually back the yen, leaving the pair lifeless. By the end of last week, equities reflected mounting concern about global economic slowing growth, turning south and further limiting chances of a rally beyond the 110.00 level. US Treasury yields in the meantime closed the week in the red with the benchmark yield for the 10-year note down to 2.63%. Japanese banks will be closed at the beginning of the week in observance of National Foundation Day, while China will return from a long holiday's week. No relevant data will be released this Monday during the Asian session.
The pair holds on to gains above the 61.8% retracement of its 111.44/105.16d decline at 109.05, a strong static support level, although, in the daily chart, it offers a technical stance, given that technical indicators hold flat right above their midlines. The 100 and 200 DMA in the mentioned chart converge above the top of the range, in the 111.50/70 price zone, acting as a long-term line in the sand. The 4 hours chart shows that the price is developing a handful of pips above a mild bullish 100 SMA, which advances above the 200 SMA, also indicating limited selling interest, while technical indicators remain stuck to their midlines, offering no clues on what's next for the pair.
Support levels: 109.40 109.05 108.65
Resistance levels: 110.15 110.45 110.90
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.