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.