USD/JPY analysis: sellers capping advances around 106.00

Valeria Bednarik FXStreet

USD/JPY Current price: 105.98

Japanese data signaled steady growth in the country, but the yen advance on demand for safety.
US macroeconomic calendar to remain scarce this Tuesday, Fed in the eye of the storm.

The USD/JPY pair tried to regain the 106.00 level but was unable to, settling for the day a handful of pips below Friday's close. The pair found temporal support ahead of the US session opening as Treasury yields advanced, but the movement was short-lived for both, while the following Wall Street's slump put it back under selling pressure. At the beginning of the day, Japan released its February trade balance, which came in with a surplus of ¥3.4B. The Adjusted Merchandise Trade Balance for the same month, however, came in with a deficit, printing ¥-201.5B. Exports and Imports grew in the month, missing market's expectations but anyway signaling a firm economic recovery. The country will release the final versions of the Leading and Coincident indexes for January, seen revised higher, while in the US, the calendar will remain scarce, with attention focused on Fed's meeting next Wednesday. The pair is still bearish according to short-term technical readings, as in the 4 hours chart, an early spike met selling interest around a modestly bearish 100 SMA, while technical indicators were rejected from their mid-lines, although are currently heading nowhere right below their mid-lines.

Support levels: 105.60 105.25 104.90

Resistance levels: 106.20 106.50 107.00

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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