USD/JPY: neutral, but moving away from 112.00

Valeria Bednarik FXStreet

USD/JPY Current price: 111.87

Japanese data overall disappointing, previous figures downwardly revised.
US macroeconomic calendar with nothing relevant to offer today.

The USD/JPY pair seesawed in a well-limited range at the beginning of the day, holding within familiar levels and currently at around 111.85. Equities were unable to follow the positive lead of Wall Street, trading mixed in Asia, while US Treasury yields ticked lower, offering mixed clues to JPY traders. Across the board, the greenback remains the strongest.

Data coming from Japan once again missed the market's expectations, as the February All Activity Index fell by 0.2%, worse than the -0.1% expected. The Leading Index for the same month was confirmed at 97.1 while the Coincident Index surpassed the market's forecast by bouncing to 100.4. The previous readings for all Japanese figures suffered downward revisions. The US macroeconomic calendar has nothing relevant to offer today but will release Durable Goods Orders Thursday and the advanced estimate of Q1 GDP next Friday.

From a technical point of view, the USD/JPY pair maintains a neutral stance, as, in the 4 hours chart, it keeps developing below a directionless 20 SMA, while holding above the larger ones, and as technical indicators stand flat just below their midlines. The pair could gain downward traction on a break below 111.60, the immediate support, while the highs in the 112.10/20 region will likely keep capping the upside today.

Support levels: 111.60 111.25 110.90

Resistance levels: 112.15 112.50 112.85

View Live Chart for the USD/JPY

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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