USD / JPY Current Price: 108.45
- The Wall Street rally limited the gains of the Japanese yen.
- Yields on US Treasuries ended the week with gains, supporting the USD / JPY.
- The bearish neutral USD / JPY could change the bias once above 109.40.
USD / JPY reduced its first gains and closed the week unchanged at 108.20, the lowest in recent days. The Japanese yen benefited from the weakness of its rival, although firm stocks and stable Treasury yields limited movements. Wall Street rebounded Thursday, supported by the announcement by the US Federal Reserve of a new loan plan, resulting in gains in these markets which remained open on Good Friday. As for public debt, the yield on the 10-year US benchmark was 0.72%, keeping most of its weekly gains.
Japan released the March producer price index on Friday, which fell 0.9% over the month and slipped 0.4% from the previous year. Bank loans increased 2.0% in the same month. At the start of the week, the country will release monetary data for March. Trade could be choppy as most markets will remain closed due to Easter Monday.
USD / JPY Short-term Technical Outlook
The USD / JPY pair remained below Fibonacci resistance at 109.20 after hitting a weekly high of 109.38 on Monday. The pair is technically bearish to neutral according to the daily chart, as it now oscillates around its 200 SMA all below the shortest, all without direction. The Momentum indicator drops lower in negative levels, while the RSI is flat around 50. In the 4-hour chart, the pair lacks clear directional strength, although the risk is biased downward as the indicators techniques remain flat below their medians as the price evolves in moving averages without direction.
Support levels: 108.00 107.70 107.25
Resistance levels: 108.65 109.00 109.40
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