USD/JPY: consolidating near weekly highs

Valeria Bednarik FXStreet

USD/JPY Current price: 111.65

BOJ kept the monetary policy unchanged as expected.
US Michigan Consumer Sentiment Index foreseen at 95.3 in March.

The USD/JPY pair trades unchanged in the 111.60 price zone, after extending its weekly advance to 111.89 overnight. As expected, the Bank of Japan kept its monetary policy steady in its Friday meeting, while policymakers cut their assessment on overseas economies amid fresh signs of a slowdown. Stocks markets rallied in Asia, while European ones maintain the positive tone, limiting further the downside for the pair. The greenback, on the other hand, remains unattractive, under pressure across the board.

The US macroeconomic calendar will offer today the March NY Empire State Manufacturing Index, forecasted at 10.0 vs. the previous 8.8, February Industrial Production and Capacity Utilization, and the preliminary Michigan Consumer Sentiment Index for March, foreseen at 95.3 vs. 93.8 previously. This last could give the greenback a short-term boost at the end of the week.

The 4 hours chart offers a neutral-to-bullish stance, as the pair holds above its 100 and 200 SMA, which retain their bullish slopes, while technical indicators continue to consolidate above their midlines, with no clear directional strength. Chances of an upward extension seem unlikely as there's no big catalyst in the horizon to trigger dollar's strength.

Support levels: 111.10 110.85 110.50

Resistance levels: 111.90 112.20 112.50

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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