Monday, February 25, 2019

USD/JPY - 25 February 2019


Fundamental Highlights

The USD/JPY pair continued trading within the same range, as the macroeconomic picture remained the same on Friday. The US Dollar has lost a bit of its momentum after the Fed's dovish remarks, while the Yen weakens after disappointing local data. Japan released overnight National inflation figures for January, with the CPI up by 0.2% YoY, below the previous 0.3%, while the core reading, ticked up to 0.4% from the previous 0.3%. The numbers were in-line with market's expectations, but far below BOJ's desired level, despite the massive stimulus the central bank has been applying for years. Looking ahead, there isn’t any relevant economic data scheduled to be released today.

Technical Analysis

The Dollar/Yen is still trading between two minor support and resistance levels; 110.57 and 110.95 respectively. Price needs to breakout from these levels for a potential retest of the major support/resistance levels which are 111.10 (R1) and 110 (S1). The bears are favored a bit to take the advantage of this potential price movement as it broke below the 50-day moving average on Friday.

Support: 110 / 109.60
Resistance: 111.1 / 111.40

Chart (H4)