USD/JPY analysis: short term neutral, but bullish trend prevails in the background
USD/JPY Current price: 112.74
The USD/JPY pair struggled for direction this Monday, ending the day marginally higher around 112.75. The pair advanced up to 113.05 at the beginning of the day, but bulls lost the grip, despite positive US data and rising US yields. Earlier on the day, Japan’s quarterly Tankan business sentiment survey surged to its highest in a decade, with the main index for Q3 up to 22 from previous 17, a sign that the economic recovery is broadening. In the US, yields mover marginally higher, with the 10-year note benchmark up to 2.34% after closing on Friday at 2.32%. Also, the Nikkei Manufacturing PMI rose in September to 52.9, beating previous estimates of 52.6. The pair is in a consolidative phase with the bullish trend holding in the background. In the 4 hours chart, technical indicators continue to be stuck around their mid-lines, but the price remains above a strongly bullish 100 SMA, which now advanced up to the 111.60 region. The pair topped at 113.25 last week, the level to surpass to confirm another leg higher, which can extend up to the critical 114.40 region during the following sessions.
Support levels: 112.20 111.85 111.50
Resistance levels: 112.90 113.25 113.60
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.
