USD/JPY analysis: modest advance doesn't confirm further gains ahead
USD/JPY Current price: 110.32
- US Treasury yields stabilized after an early recovery, keeping the pair near daily highs.
- Bulls hesitate ahead of fresh trade-war headlines.
The USD/JPY pair recovered some ground amid the better performance of worldwide equities and bouncing Treasury yields but spent the day hovering around the 110.15 Fibonacci resistance, to finally advance some 20 pips above this last by the end of the American session. US government bond yields surged ahead of the US opening, holding steady afterward, with the 10-year note yield hovering around 2.91% for most of the last session. The Minutes from the BOJ's latest meeting released at the beginning of the day showed that one member said that additional easing would be needed to accelerate inflation, although the rest stick to maintaining the monetary policy unchanged. Nevertheless, there was no formal requirement to change the ongoing policy. BOJ's Kuroda participated in the Central Banking panel, but as his overseas counterparts, didn't reveal anything new. There's nothing of relevance scheduled in Japan for the upcoming Asian session. In the meantime, and according to the 4 hours chart, the upside potential is limited, as technical indicators hold below their mid-lines with modest upward slopes, indicating no buying interest. The pair is resting above directionless 100 and 200 moving averages, which converge around 109.85, providing a short-term support.
Support levels: 110.15 109.85 109.55
Resistance levels: 110.45 110.90 111.34
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.
