USD/JPY analysis: Slow recovery brings doubts

Matías Salord FXStreet

USD/JPY Current price: 109.19

The yen ended the week mostly lower in the market, with no significant variations. Modest weekly gains in equity markets, a small rise in US yields and no new geopolitical worries lowered the demand for the yen. The fundamental perspective still shows concerns and despite a rally in Wall Street on Thursday, the short-term trend in equity prices remains to the downside. Next week, US data could have a more significant impact, also US President Trump could make some announcements.

The USD/JPY pair posted minor gains and the bullish correction could continue. Still, the dominant trend favors the yen. On a wider perspective that would change with a break above 113.50, that level, for the moment is out of reach. A correction on top of 110.10 could give more strength to the US dollar. To the downside, the pair has strong supports around 107.70: a break of that area could trigger an acceleration to the downside, boosting the yen across the board.

Support levels: 108.70 108.30 108.10

Resistance levels: 109.50 110.10 110.40

View Live Chart for the USD/JPY

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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