USD/JPY analysis: stagnated at higher levels

Valeria Bednarik FXStreet

USD/JPY Current price: 104.26

The USD/JPY pair traded as high as 104.87 this Tuesday, level last seen late July, but changed course after the release of a disappointing US consumer confidence reading, which sent US yields sharply lower as demand for safe-haven assets increase. The 10-year note and 30-year bond yields fell from one-week highs, whilst the two-year note yields slid from a two-week peak. The USD/JPY pair trimmed all of its daily gains to close the day pretty much flat around 104.20, and the short term picture supports some additional declines, given that technical indicators have entered negative territory, with the RSI indicator heading modestly lower around 44. In the same chart the 100 SMA is advancing modestly above the 200 SMA, both providing a strong dynamic support around 103.95, and the level to break to confirm further declines. In the 4 hours chart, technical indicators have turned sharply lower within positive territory, holding so far above their mid-lines, whilst the 100 SMA continues heading sharply higher below the current level, suggesting declines will likely be short-lived.

Support levels: 103.95 103.50 103.20

Resistance levels: 104.60 105.05 105.40

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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