USD/JPY analysis: pivotal around 114.00 in the absence of a major catalyst
USD/JPY Current price: 113.90
- USD/JPY continues lacking directional strength, hovering near multi-month highs.
- Japan coincident and leading indexes expected below previous month final figures.
The USD/JPY pair remains within a consolidative phase around the 114.00 pivotal level, down this Tuesday amid a weaker greenback by the end of the day. The pair traded as high as 114.33 at the beginning of the day, helped by the strong upward momentum in Asian equities, as the Nikkei added roughly 400 points, to close at its highest in 26 years. European equities, however, hesitate and closed mixed, while Wall Street capitulated, backing the pair's late decline from the mentioned high. US Treasury yields added to the pair's bearish case, with the 10-year note benchmark down to 2.31% from previous 2.32%, and the yield on the 30-year note own to 2.77% from 2.80%. Japan will release its preliminary coincident and leading indexes during the upcoming Asian session, expected below previous month final figures. The 4 hours chart shows that the price remains above its 100 and 200 SMAs, both maintaining their bullish slopes, although technical indicators entered bearish territory, with the Momentum now surpassing its previous November low, somehow anticipating additional declines ahead, particularly on a break below the 113.50 region, where the pair met buying interest a couple of times during the last two weeks.
Support levels: 113.55 113.20 112.80
Resistance levels: 114.05 114.40 114.85
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.
