USD/JPY Current price: 111.97
- US Treasury yields extend rally, keeping USD/JPY afloat.
- Unimpressive data from both economies left speculative interest clueless.
The USD/JPY pair remained confined to a tight range around the 112.00 level, finishing Tuesday a couple of pips below the figure after extending its weekly decline to 111.84. Risk sentiment fluctuated between positive and negative throughout the day, with the pair showing little reaction to it, rather linking its limited directional moves to US Treasury yields' behavior. Strong earnings reports pushed investors away from safe-haven bonds, resulting in yields extending their rallies to fresh 3-week highs, with the yield on the benchmark 10-year note reaching 2.60%. Wall Street pulled off its highs, but Treasury yields held on to gains. Japan release the Tertiary Industry Index for March at the beginning of the day, which resulted in -0.6%, worse than the -0.2% expected. The country will release this Wednesday, March Trade Balance, expected to post a surplus of ¥372.2B.
The consolidative phase continues, and the 4 hours chart shows that, despite having lost upward momentum, the downside potential remains limited, as a bullish 20 SMA continues attracting buyers on intraday declines. The RSI indicator in the mentioned chart hovers around 62, while the Momentum has extended its decline down to the 100 level where it turned flat, this last, rather reflecting the absence of progress than suggesting an upcoming decline.
Support levels: 111.80 111.40 111.10
Resistance levels: 112.15 112.50 112.85
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.