USD/JPY analysis: pressure eased, but bears still in the drivers' seat
USD/JPY Current price: 110.80
- BOJ's Finance Minister Aso commented on currencies' moves, weighing on the JPY.
- USD/JPY pair capped by selling interest around 111.00.
The USD/JPY pair gained some ground at the beginning of the day, as a consequence of Japanese Minister Taro Aso warnings about excessively rapid moves in the currency market. He didn't make any particular comment on FX levels, but as it happens with the 1.2000 threshold in EUR/USD and the ECB, Japanese monetary policymakers don't welcome a USD/JPY sub-110.00. Anyway, data continued surprising to the upside in the Asian country, as the All Industry Activity Index surged 1.1% in November, more than doubling the 0.4% expected. The country will release Machinery Orders during the upcoming session, seen sharply down in November after an impressive October gain. An early advance was contained by selling interest near the 111.00 level, suggesting that speculative interest is willing to keep selling at higher levels. Technically, and according to the 4 hours chart, the pair remains biased lower, as the 100 SMA extended its bearish slope below the 200 SMA and both far above the current level, while technical indicators hover within negative territory after correcting oversold conditions. This week low at 110.32 is the support to break to confirm another leg lower.
Support levels: 110.30 109.85 109.40
Resistance levels: 110.90 111.20 111.60
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.
