USD/JPY: neutral today, bearish tomorrow

Valeria Bednarik FXStreet

USD/JPY Current price: 111.34

The USD/JPY pair trades within a 15 pips range ever since the week started, as a holiday in China kept Asian markets subdued at the beginning of the day, while with London and New York also on holidays, the few investors holding around have little to work with so far today. The greenback, however, maintains the sour tone across the board, despite the breather it took late last week, holding not far from this month lows against its major rivals. During the upcoming Asian session, Japan will report employment and sales data for April, which if positive, could put the pair under further selling pressure. In the meantime, a neutral-to-bearish stance persists, with the price stuck around the 50% retracement of its latest weekly rally, but developing below its moving averages in the 4 hours chart, and with technical indicators in the same time frame holding within negative territory. It would take an unlikely acceleration beyond 111.60 to see the pair recovering further, although strong selling interest remains aligned around 112.00. Below 110.85, on the other hand, the risk turns towards the downside, with scope then to test 110.00.

Support levels: 11.15 110.85 110.50

Resistance levels: 111.60 112.05 112.45

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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