USD/JPY analysis: still flat, waiting for Friday's headlines

Valeria Bednarik FXStreet

USD/JPY Current price: 110.64

USD/JPY waiting for US NFP report and definitions on tariffs.
European and US equities gained ground, but US Treasury yields end the day little changed.

The USD/JPY spent the day confined to a tight 40 pips range, bottoming during the Asian session at 110.28, from where it recovered amid the positive tone of European and US equities, and an uptick in US Treasury yields. However, the pair remained stuck to the 110.60 even after the release of US FOMC Meeting Minutes as the dollar ticked higher, although there were no fireworks across the FX board, despite the tone of the document fell short of hawkish. During the upcoming Asian session, Japan will release its preliminary Leading Index and Coincident Index for May, with the first seen at 106.5, marginally up from April's figure, and the second weakening from 117.5 to 116.1. Anyway, market's attention is centered in US employment data and any developments around US tariffs on Chinese imports of goods. From a technical point of view, the 4 hours chart shows that the pair bounced for a second consecutive day from a flat 100 SMA, but the upward potential remains limited, as technical indicators remain directionless, with the Momentum below its 100 level and the RSI around 50.

Support levels: 110.25 109.90 109.50

Resistance levels: 110.70 111.10 111.40

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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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