USD/JPY analysis: retest of 104.60 likely
USD/JPY Current price: 104.22
The USD/JPY pair recovered the 104.00 level at the beginning of the week, extending to a 1-week high of 104.31 following the release of a strong US Markit manufacturing PMI, up in October to its highest in over a year, and comments from FED's Bullard, who supported a rate hike before year-end, although he remarked that low interest rates will likely be the norm during the next two to three years. The USD/JPY pair trades at the upper end of its October range, not far from the monthly high set at 104.63, and intraday technical readings support a retest of such high, as in the 1 hour chart, the price is developing above its 100 and 200 SMAs, while technical indicators have resumed their advances within positive territory, standing at fresh 1-week highs. In the 4 hours chart, the Momentum indicator has turned south within positive territory, barely holding above its mid-line, while the RSI indicator has turned flat around 62 and the 100 SMA keeps advancing blow the current level, now around 103.50. The pair will likely remain range bound until the release of Japanese inflation data next Thursday, which may give clearer clues on what to expect from the BOJ next week.
Support levels: 103.95 103.50 103.20
Resistance levels: 104.60 105.05 105.40
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.
