USD/JPY analysis: upside limited by 117.40

Valeria Bednarik FXStreet

USD/JPY Current price: 116.95

After posting a fresh 3-week low of 115.06, the USD/JPY pair closed the week flat a couple of pips below the 117.00 level, with the Japanese yen undermined by a recovery in USD-related assets. On Friday, and following a mixed US employment report, which showed less-than-expected jobs' creation, but a strong gain in wages, US yields bounced back from multi-week lows, while stocks posted all-time highs, with the DJIA flirting with 20,000. Further gains are still to be confirmed, as the daily chart shows that technical indicators have turned sharply higher, and are currently struggling to confirm an upward extension into positive territory, whilst the 100 DMA extended further above the 200 DMA, both far below the current level. In the 4 hours chart, technical indicators have recovered from oversold readings, but pared gains below their mid-lines, having lost upward momentum, whilst the price bounced from a bullish 200 SMA, but was unable to extend beyond the 100 SMA, now at 117.40. It would take a clear advance beyond this last to confirm additional gains, back towards the 118.60 price zone.

Support levels: 116.55 116.10 115.70

Resistance levels: 117.00 117.40 117.90

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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