USD/JPY analysis: neutral, but risk remains towards the upside

Valeria Bednarik FXStreet

USD/JPY Current price: 114.02

The USD/JPY pair was unable to attract speculative interest this Tuesday, trading within a 60 pips range all through the day, with the upside contained by selling interest around 114.18. The pair was unable to react to US data, and trades not far from the multi-month high set last week around 114.90. Somehow, the limited upward potential in the JPY indicates that the latest slide of the greenback against its European rivals, is a due correction after the post-Trump victory rally. As for the technical outlook the short term picture is neutral, as in the 1 hour chart, the price is converging with a still bullish 100 SMA, and a major Fibonacci level, both around 114.00, while technical indicators have no directional strength, flat barely above their mid-lines. In the 4 hours chart, technical indicators are also stuck around their mid-lines, although the 100 and 200 SMAs keep heading higher below the current level, with the shortest offering a strong support around 111.90. The risk remains towards the upside as long as the price holds above this last, although a break above the mentioned 114.90 region is required to confirm a new leg higher, up to the 116.60 price zone.

Support levels: 113.60 113.15 112.80

Resistance levels: 114.45 114.90 115.30

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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