USD/JPY Forecast: Better market mood provides support

Valeria Bednarik FXStreet

USD/JPY Current price: 106.89

Japan’s Jibun Bank Services PM improved in February to 46.3 from 46.1.
USD/JPY is trading near this year high and poised to break higher.

The USD/JPY consolidates its latest gains, trading near this year high at 106.95. As US Treasury yields hold ground, demand for the greenback continues to recede. The American currency weakens against high-yielding rivals, although major pairs hold within familiar levels, as softer-than-anticipated EU data spurred some concerns. Stocks are up in Asian and European markets, reflecting the better market mood.

Japan published the February Jibun Bank Services PMI, which improved to 46.3 from 46.1. After the US opening, Markit will release the final reading of the US Services PMI, foreseen at 58.9, while the country will publish the official ISM index, expected at 58.7.

USD/JPY short-term technical outlook

The USD/JPY pair retains its bullish stance in the near-term and seems poised to extend gains above the 107.00 figure. In the 4-hour chart, a bullish 20 SMA provided intraday support during the Asian session, while it extends its advance beyond the longer ones. Technical indicators hold within positive levels, although with limited directional strength.

Support levels: 106.50 106.10 105.75

Resistance levels: 106.95 107.30 107.65

View Live Chart for the USD/JPY

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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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