USD/JPY Price Analysis: Remains confined in a range, above mid-109.00s ahead of US data

USD/JPY extended its sideways consolidative price action through the mid-European session.
The set-up favours bullish traders and supports prospects for a move beyond the 110.00 mark.
Weakness below the 109.35 support area has the potential to drag the pair to sub-109.00 levels.

Haresh Menghani FXStreet

The USD/JPY pair struggled to capitalize on the previous day's US CPI-inspired strong gains and witnessed a subdued/range-bound price action on Thursday. The was last seen hovering around the 109.50-60 region, just below the one-month tops set earlier today.

A generally softer risk tone extended some support to the safe-haven Japanese yen. On the other hand, a modest pullback in the US Treasury bond yields held the US dollar bulls from placing aggressive bets and further collaborate to cap the upside for the USD/JPY pair.

From a technical perspective, the two-way price moves constitute the formation of a rectangle on hourly charts. This suggests indecision over the USD/JPY pair's intraday direction and warrants some caution before positioning for any further appreciating move.

Meanwhile, technical indicators on daily/hourly charts are holding in the bullish territory and support prospects for an eventual breakout on the upside. That said, investors preferred to wait on the sidelines ahead of the Initial Jobless Claims from the US.

From current levels, some follow-through buying has the potential to push the USD/JPY pair back towards the key 110.00 psychological mark. The momentum could further get extended towards the top end of an ascending channel, currently around the 110.25 region.

On the flip side, immediate support is pegged near the 109.35 horizontal resistance breakpoint. Sustained weakness below might turn the USD/JPY pair vulnerable to slide further to the 109.00 mark before bears target the ascending channel support, around the 108.80 region.

USD/JPY 1-hour chart

Technical levels to watch

USD/JPY

Overview
Today last price	109.62
Today Daily Change	-0.05
Today Daily Change %	-0.05
Today daily open	109.67

Trends
Daily SMA20	108.7
Daily SMA50	109.03
Daily SMA100	106.79
Daily SMA200	105.93

Levels
Previous Daily High	109.71
Previous Daily Low	108.6
Previous Weekly High	109.7
Previous Weekly Low	108.34
Previous Monthly High	110.85
Previous Monthly Low	107.48
Daily Fibonacci 38.2%	109.28
Daily Fibonacci 61.8%	109.02
Daily Pivot Point S1	108.94
Daily Pivot Point S2	108.21
Daily Pivot Point S3	107.83
Daily Pivot Point R1	110.05
Daily Pivot Point R2	110.43
Daily Pivot Point R3	111.16

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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