The Dollar-Yen pairing managed to hold onto early week gains, closing out Friday not far off of where prices hit their highs at 113.70 on Thursday, though the US Dollar saw moderate easing on Friday as US Treasury yields trimmed their gains following a new cycle of relief headlines surrounding US-China trade tensions. 10-year Treasury yields stepped down to 2.89%, and adding to the Yen’s limited strength was yet another down day for Wall Street as equities markets grow increasingly fearful of an economic slowdown across the European and Asian continents. Monday is promising quiet action with no meaningful data for Japan on the docket.
The pair has been struggling for direction for over a month already, with the downside well-limited but no follow-through beyond the 114.50 price zone, where the pair topped early October. The daily chart shows that technical indicators have lost upward momentum, heading lower in neutral territory, falling short of indicating a bearish extension, moreover considering that the pair has bounced several times from a bullish 100 DMA, currently at 112.40. Shorter term and according to the 4 hours chart, the technical picture is neutral, as the pair bounced modestly from directionless and converging moving averages, as technical indicators head nowhere around their midlines.
Support levels: 113.10 112.90 112.55
Resistance levels: 113.70 114.00 114.40