USD/JPY analysis: more gains only beyond 112.00

Valeria Bednarik FXStreet

USD/JPY Current price: 111.88

The USD/JPY pair traded as high as 111.90, and settled a few pips below the level late US sesion, with the JPY affected by the sudden slide in gold prices seen early London. The commodity shed nearly $20 in a matter of seconds, with no certain catalyst behind the move, and a suspected "fat finger" as gold futures saw a huge spike in volume. The pair eased after the release of soft US data, but bounced back during the American session, despite the yield curve in the US continued to flatten amid falling inflation expectations, and the 10-year benchmark fell down to 2.13% from previous 2.14%. There are no major releases scheduled during the upcoming Asian session, which means that the pair will likely follow the lead of equities. From a technical point of view, the 4 hours chart presents a positive tone, given that technical indicators have managed to bounce after nearing their mid-lines, whilst the price remains above its 100 and 200 SMAs, both lacking directional strength. Nevertheless, the pair needs to break above 112.00, the 38.2% retracement of the latest bullish run to be able to post a more sustainable advance.

Support levels: 111.60 111.20 110.90

Resistance levels: 112.00 112.45 112.80

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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