USD/JPY analysis: upward correction not enough to confirm a bottom

Valeria Bednarik FXStreet

USD/JPY Current price: 113.65

The USD/JPY pair recovered some ground after falling almost vertically for over a week, as risk-averse trading eased. A recovery in worldwide stocks and US yields, also helped the pair, with the US Treasury 10-year note benchmark up to 2.38% from previous 2.33%. There's no relevant data coming from Japan during the upcoming Asian session, anticipating some thin trading around the pair, particularly ahead of the upcoming ECB meeting, and a busy US calendar. From a technical point of view, the short term picture presents a limited upward scope, given that in the 1 hour chart, technical indicators lost their upward strength and are slowly turning south, whilst the price remains well below its moving averages, with the 100 SMA currently reinforcing the static resistance around 114.00. In the 4 hours chart, technical indicators extended their recovery from oversold readings, maintaining their upward slopes within bearish territory, whilst the 100 SMA extended its downward move, converging now with the 200 SMA at 116.00.

Support levels: 113.10 112.65 112.20

Resistance levels: 113.70 114.00 114.45

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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