USD/JPY: Limited demand for the safe-haven yen
USD/JPY is neutral for a third consecutive day, as dismal Japanese data constrain appetite for the yen. Valeria Bednarik, Chief Analyst at FXStreet, analyze the pair’s outlook.
“Growth in the last quarter of 2019 contracted by more than anticipated, than by 1.6% QoQ, while the annualized growth in the same period came in at -6.3%. Also, Industrial Production in the country was down by 3.1% MoM in December, while Capacity Utilization fell by 0.4%.”
“The USD/JPY pair is trading in the 109.80 price zone, neutral in the short-term. The 4-hour chart shows that it’s seesawing around a flat 20 SMA, still above the larger ones, while technical indicators stand around their midlines, without clear directional strength.”
“The pair would need to clear the 110.00 level to be able to extend its advance toward the year high, at 110.28. Chances of such advance, however, are quite limited at the time being. The downside potential is limited as long as the pair holds above 109.40, the immediate support.”