USD/JPY analysis: retest of 112.00 region becomes more likely

Valeria Bednarik FXStreet

USD/JPY Current price: 113.08

USD/JPY upward momentum eases, but a leg lower needs confirmation.
Data-light Tuesday will likely see the pair following the lead of US T-yields.

The USD/JPY ended the day unchanged from Friday's close after briefly surpassing last week's high to reach 113.38. The pair fell down to 112.87, following an intraday slide in US Treasury yields, but managed to bounce back alongside with them in US trading hours. The absence of relevant news coming from Japan and the US help to keep the pair within range. Japan will come back after a long holiday with a couple of minor releases, with December consumer confidence being the most relevant, expected at 45.1 from previous 44.9. The US calendar will have nothing relevant to offer, beyond a speech from Fed's Kashkari. The 4 hours chart shows that bulls have lost the grip, at least temporarily, as technical indicators turned lower with the Momentum heading modestly lower within positive territory, and the RSI aiming to regain the upside after correcting overbought conditions, currently at 55. In the mentioned chart, the pair bounced from a flat 100 SMA, providing now an immediate dynamic support that once broken, should lead to a decline towards the 112.10 price zone.

Support levels: 112.90 112.60 112.10

Resistance levels: 113.40 113.75 114.10

View Live Chart for the USD/JPY

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.

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