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USD/JPY consolidates above 10-DMA, US data eyed

FXStreet (Mumbai) - After fading a spike near 119.80 region, the USD/JPY pair is seen consolidating above the hourly 200-SMA and awaits fresh cues from the upcoming US data and Fed official’s speeches.

USD/JPY: fails near 119.80 – daily highs

Currently, the USD/JPY pair trades 0.10% higher at 119.62, unable to extend beyond 20-DMA barrier located at 119.79. The major is currently seen making lower tops on the hourly charts during the European session after having peaked near 119.80 region earlier on the day.

The major remains torn between the recent upbeat US fundamentals (last week’s impressive US CPI and consumer sentiment data and Monday’s NAHB index) reviving Fed rate hike talks and the negative sentiment on the global equities.

Hence, today’ US housing data will be closely eyed for further signs of strength in the US economy while Fed speaks will remain in the spotlight for fresh hints on the Fed interest rates outlook.

USD/JPY Technical levels to consider

The pair holds remains supported above 119 handle eyeing the next resistance located at 119.78/79 (daily high & 20-DMA) beyond which 120 barrier could be tested. Above the last, the pair could climb further towards 120.14 (daily R3). While to the downside immediate support might be located at 119.42 (daily low), below which 119.17 (h1 100-SMA) could be exposed. A breach of the last, the pair could drop to 118.80 (Oct 16 Low).

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