USD/JPY Forecast: mildly bullish in the near-term
USD/JPY Current price: 109.29
- Market players are waiting for US data to decide where to go next.
- Stocks and government yields tick higher, providing support to USD/JPY.
- USD/JPY is neutral-to-bullish, still needs to break above 109.70.
The USD/JPY pair is unable to attract investors, hovering around the 109.30 figure, as demand for the greenback eased without affecting the behavior of safe-haven rivals. US Treasury yields are marginally higher, and so do equities, with European indexes trading in the green after the poor performance of its Asian rivals.
Holidays in Japan ever since the week started, exacerbate the quietness around USD/JPY. Market players are now waiting for US data to take some risks. The US will publish the ADP survey on private jobs creation, expected to have increased by 800K in April. The country will also release the April ISM Services PMI, foreseen at 64.3 from 63.7 previously.
USD/JPY short-term technical outlook
The USD/JPY pair has limited bearish potential in the near-term. The 4-hour chart shows that it is finding support around a bullish 20 SMA, which advances above the longer ones. Technical indicators lack directional strength, stuck around their midlines. The bullish case will be firmer if the pair breaks above 109.69, the weekly high.
Support levels: 109.15 108.70 108.25
Resistance levels: 109.70 110.10 110.50
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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.
