USD/JPY: short term neutral, but bears retain control

Valeria Bednarik FXStreet

USD/JPY Current price: 111.22

The USD/JPY pair hovers around Friday's close, having been confined to a tight range ever since the day started, and well below the 112.00 mark. The greenback advanced modesty against its Asian rivals on an up-tick in US Treasury yields, but the sour tone around equities and broad dollar's weakness maintain the upside limited. From a technical point of view, the 4 hours chart shows that the price remains stuck around the 50% retracement of its latest bullish run and the 200 SMA, both converging at 111.20. In the same chart, technical indicators diverge from each other, with the Momentum aiming north above 100 and the RSI heading south around 41, failing to provide clear clues on what's next for the pair. There's an immediate support around 110.90, with a break below it opening doors for a steeper decline that can extend down to the 110.00 region over the upcoming sessions.

Support levels: 110.90 110.55 110.20

Resistance levels: 111.60 112.00 112.45

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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