USD/JPY climbs to key level on stronger US data
Fawad Razaqzada March 5, 2019 11:35 AM
Today’s stronger-than-expected US ISM Non-Manufacturing PMI and New Home Sales data both helped to drive the dollar higher, which caused the USD/JPY to hit a fresh 2019 high. But with stocks struggling over the past day and a half, and the always-important US jobs report coming up on Friday, it will be interesting to observe where this risk-sensitive pair is headed.
Technically, with the RSI nearing the ‘overbought’ territory and price hitting 112.10 prior support, we wouldn’t be surprised if rates were to ease back a little from around here. Some of the important short-term levels we are currently watching are:
- 110.50: the 200-day moving average (potential support)
- 111.05: base of the recent breakout (potential support)
- 112.10: last support prior to breakdown on Dec 20 (potential resistance)
- 112.50: the 78.6% Fibonacci retracement (potential resistance)
TradingView and FOREX.com.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.