USD/JPY Forecast: Still unable to run past 111.00
USD/JPY Current price: 110.85
- Japan´s May Corporate Service Price Index Improved to 1.5% YoY from 1.1% previously.
- US Treasury yields ticked higher, but remain within familiar levels.
- USD/JPY is losing bullish steam but still far from bearish.
The USD/JPY pair traded as high as 111.12, surpassing its previous yearly high, but was once again unable to run beyond the 111.00 figure. The pair retreated from the mentioned high towards the current 110.80/90 price zone, despite the prevalent optimistic mood. Wall Street extended its rally after Wednesday’s consolidation with the Nasdaq and the S&P flirting with all-time highs. US Treasury yields ticked higher but held within familiar levels, with the yield on the 10-year note steady below 1.50%.
Japan published the May Corporate Service Price Index, which improved to 1.5% YoY, from 1.1%, beating expectations. The country will publish June Tokyo inflation figures. The Consumer Price Index excluding fresh food prices is foreseen at -0.1% YoY from -0.2$ in the previous month.
USD/JPY short-term technical outlook
The USD/JPY pair may lose its bullish potential in the near-term. The 4-hour chart shows that the pair met buyers around a bullish 20 SMA, but also that the Momentum indicator heads firmly lower, approaching its midline. The RSI indicator consolidates around 59, suggesting that bearish interest is scarce. The decline may accelerate on a break below 110.50, a strong static support level.
Support levels: 110.50 110.05 109.70
Resistance levels: 110.95 111.30 111.80
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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.
