USD/JPY analysis: selling interest limited, 114.40 still at sight

Valeria Bednarik FXStreet

USD/JPY Current price: 113.46

USD/JPY following the lead of US Treasury yields, as usual.
Japanese inflation at factory levels seen below previous.

After being under moderate selling pressure ever since the day started, the USD/JPY pair recovered some ground to finish the day unchanged from Friday's close in the 113.40 region. Following a soft-start of the week, the greenback managed to regain some ground at the end of the day, but trading volumes were at lows throughout the day amid a quiet macroeconomic calendar. The pair fell down to 113.23 as US yields were off to a soft start, with the 10-year note yield falling intraday to 2.36% before regaining the 2.38% level, although the 30-year note yield closed the day at 2.77%, below the previous 2.785. Japan will release its November domestic corporate goods price index during the upcoming session, seen below the previous reading. In the meantime, the 4 hours chart shows that the price has held above its 100 and 200 SMAs far below the current level, while technical indicators are turning back north after correcting extreme overbought conditions, all of which indicates that selling interest remains well-limited around the pair. A fresh multi-week high was set at 113.65, now the immediate resistance and the level to surpass to open doors for a test of the critical long-term resistance at 114.40.

Support levels: 113.10 112.70 112.30

Resistance levels: 113.65 114.00 114.40

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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