USD/JPY: neutral short term, upside well limited by 112.00
|USD/JPY Current price: 111.27
The USD/JPY pair continues struggling for direction, stuck around the 50% retracement of its latest bullish run pretty much since the week started. With no major releases in Japan overnight, the pair took clues from yields, with remained flat as investors hesitate on what to do next with the greenback, trapped between a confident Fed and soft inflation. The US is about to release its weekly unemployment claims figures, later followed by April's housing price index, but unless the first posts a huge surprise, seems unlikely the figures would be enough to trigger interesting moves.
Technically, the 4 hours chart shows that the price stands a few pips below a modestly bearish 200 SMA, while a horizontal 100 SMA converges with the 61.8% retracement of the mentioned rally at 110.50 providing a strong support. Indicators in the same chart are flat around their mid-lines, reflecting the ongoing absence of directional strength. Only an upward acceleration beyond 112.00 could put the pair in the bullish track, something unlikely unless yields pick up.
Support levels: 110.85 110.50 110.10
Resistance levels: 111.60 112.00 112.45
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