USD/JPY analysis: safe-haven yen won't give up easily to dollar's demand

Valeria Bednarik FXStreet

USD/JPY Current price: 113.53

The USD/JPY pair closed the day marginally higher at 113.53, retreating from a daily high of 113.77, following the release of tepid US Markit PMIs, down to fresh 2-month lows. The figures were not enough to trigger concerns about US economic health, but given the underlying political uncertainty seems unlikely the safe-haven currency could ease much. US Treasury yields recovered some ground, with the 10-year note benchmark up to 2.458% intraday, before retreating back to the 2.42%, further limiting chances of a rally in the pair. In the data front, the Japanese flash Manufacturing PMI expanded to 53.5 in February from 52.7 in January, the highest reading in almost three years. The 4 hours chart shows that the pair stalled its recovery below a bearish 200 SMA, currently at 113.85 the immediate resistance, whilst technical indicators have lost upward momentum within positive territory, but are still far from confirming a downward move. The pair has met buying interest on retracements towards 113.40, now the immediate support, with a break below the level favoring a downward extension towards 112.50.

Support levels: 113.40 113.00 112.50

Resistance levels: 113.85 114.10 114.50

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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