USD/JPY: mute after US disappointing data

USD/JPY Current price: 111.39

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The USD/JPY pair held within a tight range for most of the firsts two sessions of the day, despite the BOJ. The Japanese Central Bank left its monetary policy unchanged, indicating that it will maintain the ongoing easing, although adding an upbeat tone on the economy, but also lowering its inflation forecast for this 2017 from 1.5% to 1.4%. As most major pairs, it held within a tight range ahead of the ECB's announcement and a batch of US data that resulted quiet discouraging. Initial jobless claims rose to 257K worse than the 241K expected in the week ending April 21st, whilst eh goods trade deficit expanded to $65 billion in March. Durable Goods Orders for the same month rose just by 0.7%, missing expectations of a 1.2% advance, while the core figure fell by 0.2%, against the 0.4% forecasted. The USD/JPY pair trades mute around 111.40 after the release, but the risk turned towards the downside, as seems unlikely US equities and yields could back the pair with this figures, and will likely lead to a downward move, based on sentiment. Technically, the 4 hours chart maintains a neutral-to-bullish stance, as the RSI indicator holds flat around 67, while the Momentum heads modestly lower near overbought readings. Additionally, the price continues developing above its 100 and 200 SMAs, with the largest acting as an immediate support an 110.95, the level to break to confirm a bearish extension, whilst only above 112.00 the bullish trend will continue developing.

Support levels: 110.95 110.60 110.30

Resistance levels: 111.60 112.00 112.45