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FxWirePro: USD/JPY struggles at 200-DMA at 110.36, intraday bias neutral

  • USD/JPY is trading an extremely narrow range, intraday bias remains neutral.
     
  • The pair has closed the bearish gap open in early Asian trade, but upside lacks traction.
     
  • 200-DMA at 110.36 is stiff resistance and the pair failed to close above on Friday's trade.
     
  • Technical indicators are not conclusive, RSI flat-lined below 50 levels and MACD still bias lower.
     
  • FOMC later this week along with U.S. retail sales and CPI data could provide direction.
     
  • Market have largely priced in a rate hike from the Fed, the statement will be key for driving market sentiment.

Support levels - 110, 109.96 (5-DMA), 109.25 (trendline)

Resistance levels - 110.36 (200-DMA), 110.61 (23.6% Fib of 118.662 to 108.130 fall), 110.96 (20-DMA)

Recommendation: We prefer to wait for clear directional bias

 

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