Tuesday, March 12, 2019

USD/JPY - 12 March 2019


Fundamental Highlights

The Yen gained some upward traction as investors rushed back into global equities after Fed Chief Powell's optimism about the performance of the local economy, although softer-than-expected Japanese data kept gains at check. Japan February Machine Tool Orders plunged by 29.3% from a year earlier, after printing -18.8% in January, signaling slowing economic growth continues. Earlier this morning, the BSI Large Manufacturing index for Q1 widely missed expectations by -7.3, foreseen at 4.8. This could dent the Yen's current bullish sentiment and could push it back lower

Technical Analysis

The USD/JPY broke back above 111.10 yesterday, but found resistance just below 111.50 (R1) key resistance which is also the 50-day moving average (blue line). If the bears keep price below this level, then we could likely see a pullback towards 111.10 (S1) and even 110.77 (S2).

Support: 111.10 / 110.77
Resistance:111.50 / 112 

Chart (H4)