USD/JPY Forecast: Consolidative phase continues

Valeria Bednarik FXStreet

USD/JPY Current price: 104.41

Equities traded mixed as optimism faded, putting a cap to USD/JPY.
Soft US data weighed on the greenback, which fell against most major rivals.
USD/JPY is technically neutral in the near-term, bears side-lined.

The USD/JPY pair is ending Wednesday pretty much unchanged104.30 price zone, undermined by the broad dollar’s weakness and the soft tone of worldwide indexes. Investors were not interested in the greenback, which came under pressure on the back of easing optimism. Mixed US data and Brexit concerns hurt the positive mood.

Wall Street traded mixed, while US government debt edged modestly lower, reflecting the fading enthusiasm. On the data front, Japan published the October Corporate Services PMI, which fell by 0.6% YoY, much worse than the 1.2% advance expected. The country will publish the final version of the September Leading Economic Index, foreseen unchanged at 92.9, and the Coincident Index for the same month, expected at 80.8.

USD/JPY short-term technical outlook

The USD/JPY pair is neutral-to-bullish, trading between a bullish 20 SMA and a flat 100 SMA in its 4-hour chart. The 200 SMA provided dynamic resistance earlier this month, now at around 104.70. In the meantime, technical indicators stand within positive levels, lacking directional strength. Bulls will have better chances if the pair recovers above the 105.00 mark.

Support levels: 103.95 103.50 103.15

Resistance levels: 104.65 105.00 105.40

View Live Chart for the USD/JPY

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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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