USD/JPY: unable to hold above 111.00

Valeria Bednarik FXStreet

USD/JPY Current price: 110.69

The USD/JPY pair surged up to 111.33, its highest since last July, retreating early US session on the back of poor US Retail Sales figures just released. Sales unexpectedly fell in August, down by 0.2% in the month, against a 0.1% advance expected. The NY Empire state manufacturing survey index beat expectations, but was down in September to 24.4 from 25.2. Holding around 110.70, the pair is still up for the day, after bottoming early Asia at 109.54 on news that North Korea launched a missile over Japan. The pair then recovered, as stocks saw a limited reaction to the risk-related headlines, while yields hold on to gains. From a technical point of view, and according to the 4 hours chart, the downward potential is limited, as technical indicators turned lower from near overbought levels, still within positive territory, while the price remains well above its 100 and 200 SMAs. A downward extension below 110.25, however, will put the pair at risk of falling further, while spikes beyond 111.00 will likely attract selling interest.

Support levels: 110.25 109.80 109.30

Resistance levels: 111.05 111.40 111.85

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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