USD/JPY Price Analysis: 111.00 remains a tough nut to crack ahead of US data

USD/JPY is off 15-month highs, under pressure below 111.00.
DXY sees some fresh selling while the yen cheers Japan’s PM Suga’s comments.
Focus shifts to US Durable Goods Orders for fresh impetus.

Dhwani Mehta FXStreet

USD/JPY is making another attempt to regain the 111.00 level, reversing a dip from daily lows of 110.77.

At the time of writing, the spot trades 0.09% lower at 110.84, undermined a fresh bout of selling seen in the US dollar despite the higher Treasury yields.

Meanwhile, the yen draws support from the latest comments from the Japanese Prime Minister Yoshihide Suga, as he pledged to speed up vaccinations to boost the economic recovery.

Attention now turns towards the US data dump, including the Durable Goods, and the infrastructure stimulus updates for fresh trading impulse.

From a near-term technical perspective, the spot is testing the rising wedge hurdle at 111.00 on the daily chart, eyeing a daily closing above the last in order to confirm an upside breakout.

The bulls will then retest the 15-month tops of 111.11 reached a day before. The bullish target is envisioned at 111.50, a psychological level.

The 14-day Relative Strength Index (RSI) has turned south after testing the overbought territory, backing the latest correction.

However, the bullish bias remains intact, given that the leading indicators still hold comfortably above the midline.

USD/JPY daily chart

However, if the bulls continue to face rejection above the rising wedge hurdle, a retracement towards Wednesday’s low of 110.62 cannot be ruled out.

June 18 highs at 110.48 could come to the rescue of the buyers.

Further south, the 21-Daily Moving Average (DMA) at 109.96 could challenge the bearish commitments.

USD/JPY additional levels to watch

USD/JPY

Overview
Today last price	110.86
Today Daily Change	-0.09
Today Daily Change %	-0.08
Today daily open	110.95

Trends
Daily SMA20	109.93
Daily SMA50	109.26
Daily SMA100	108.53
Daily SMA200	106.46

Levels
Previous Daily High	111.1
Previous Daily Low	110.62
Previous Weekly High	110.82
Previous Weekly Low	109.61
Previous Monthly High	110.2
Previous Monthly Low	108.34
Daily Fibonacci 38.2%	110.92
Daily Fibonacci 61.8%	110.81
Daily Pivot Point S1	110.68
Daily Pivot Point S2	110.42
Daily Pivot Point S3	110.21
Daily Pivot Point R1	111.16
Daily Pivot Point R2	111.37
Daily Pivot Point R3	111.64

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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