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USD/JPY takes a break in mid-113.50

FXStreet (Moscow) - USD/JPY  is trading around 113.50 after having opened at 113.99 and having touched the Asian low at 113.39.

USD/JPY continued its rally on Monday. The pair broke above 114.00 and reached a new multi-year high at 114.20. The pair is dramatically overbought, it means that some healthy downside correction on profit-taking would be natural and desired, even though nothing has changed from an economic-fundamental perspective. monetary policy divergence between the FED and the Bank of Japan remain a leitmotif of the financial markets. Later during the day keep an eye at US trade balance data. The report is not much of a market mover, but positive data might support USD as investors seem to see the American glass half-full. From the technical point of view, the resistance is seen at 104/06 (Asian high) and at 114.50 (strong option barrier), while demand on approach 10 113.20/00 is likely to cap the downside on the intraday basis.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 113.52; initial support levels at 112.82, 111.87 and 111.17 with resistance above at 114.48,115.18 and 116.13. Hourly Moving Averages are bullish, with the 200SMA bullish at 109.23 and the daily 20EMA bullish at 108.81. Hourly RSI is bullish at 57.

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