USD/JPY: risks tilted to the downside?

Ross J Burland FXStreet

Currently, USD/JPY is trading at 111.34, down -0.04% on the day, having posted a daily high at 111.46 and low at 110.95.

USD/JPY has been in a reversal of the 111.80 level from double bottom lows of 110.95. However, Valeria Bednarik, chief analyst at FXTstreet suggested that
risk remains towards the downside in her technical view below.

Meanwhile, there was little on the calendar today from the US session and eyes remain on the Asian sessions Japanese June preliminary Nikkei Manufacturing PMI. The DXY was flat on the day in a tight range on the 97 handle while the ten-year yields also struggle between the 2.1372 - 2.1633% range, - 0.73% at 2.1477%.

EUR/JPY steady near 124.00

USD/JPY levels

Valeria Bednarik explained that in the meantime and from a technical point of view, the chart shows that the price has been contained below its 100 DMA ever since the week started, but also that the momentum indicator heads higher within positive territory, as the RSI stands flat around its mid-line. "In the 4 hours chart the price is stuck around its 200 SMA, while technical indicators remain flat around mid-lines, giving no clear directional clues."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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