USD/JPY Could Aim for 110.00 Level, Downside Seems Limited
On the last trading session of the week, the USD/JPY
pair sentiment remains muted with a slight negative bias ahead of
today's monthly retail sales and consumer confidence data releases from
the US.
Except for its up-move on Monday, the USD/JPY pair seems to consolidate
its recovery from multi-month lower levels touched during the beginning
of the month. The pair has repeatedly failed to clear 109.40 weekly high
resistance and reversed some of its gains. However, the upward trending
short-term moving averages (10, 20-day SMAs) support near 108.75-70
seems to suggest that the pair might resume its near-term recovery after
a brief phase of consolidation.
Moreover, recent comments from the Japan's finance minister Taro Aso on
forex market intervention on renewed strength in the Yen also seems to
extend support to the pair, restricting any sharp reversal from higher
levels.
Technical levels to watch
On the immediate upside weekly highs resistance near 109.40 remains
immediate hurdle, which if cleared should aim for levels beyond 110.00
psychological mark towards testing 50-day SMA resistance near 110.40-45
zone.
On the downside, the pair might continue to find immediate support near
108.40-35 horizontal zone. Even if the pair fails to hold this immediate
support, any further downside now seems to be limited till 10-day SMA
support, currently near 107.80 level.
