USD/JPY analysis: range bound, but bears ready to jump back in
USD/JPY Current price: 111.17
- Yen refuses to ease despite rallies in equities and stronger yields.
- USD/JPY could resume its bearish trend on renewed pressure below 111.00.
The USD/JPY pair saw little action for a third consecutive day, confined to a 40 pips range around the 111.00 figure. Mixed signs keep investors away from the pair, as, in one hand, the dollar was broadly weaker, but in the other, equities and yields rose. US indexes were sharply up ahead of the opening, retreated in the American afternoon, but managed to remain afloat. Yields, meanwhile were sharply up, with the benchmark 10-year Treasury note peaking at 2.89% to settle at 2.88%. Japan will open its macroeconomic calendar this Wednesday by releasing the August Consumer Confidence Index, seen at 43.4 from the previous 43.5. The pair maintains a mildly bearish tone, as attempts to recover ground were again contained between the 200 SMA in the 4 hours chart, currently at 111.30, and the highs from last week at around 111.50. In the same chart, indicators hold around their midlines with no clear directional strength. The 100 SMA heads modestly lower below the weekly lows, at around 110.85, offering a short-term dynamic support.
Support levels: 110.85 110.55 110.20
Resistance levels: 111.50 111.85 112.20
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.
