USD/JPY Forecast: Holding above 106.00, but weak

Valeria Bednarik FXStreet

USD/JPY Current price: 106.18

View Live Chart for the USD/JPY

Holding above 106.00, but weak. The USD/JPY pair advanced up to 106.72 at the beginning of the day, but failed to hold on to gains, as investors can't seem to find a catalyst for currencies in this dull Monday. The pair retreated back towards its opening levels, holding above the 106.00 level, and with a moderate downward potential in the short term, as in the 1 hour chart, the price is below its 100 SMA, while the technical indicators have turned lower and entered negative territory. In the 4 hours chart, the 100 and 200 SMAs remain far below the current level, whilst the technical indicators diverge from each other within neutral territory, reflecting the ongoing consolidative stage. With the BOJ and the FED scheduled for this week, the pair will likely remain within a tight intraday range around the 106.00 figure. The FED will likely remain on hold this Wednesday, but the BOJ is expected to cut rates further into negative territory, from current -0.1% to -0.15%/-0.2%.

Support levels: 105.80 105.40 105.05

Resistance levels: 106.60 107.10 107.50

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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