FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair has remained contained within a 25 pips’ range this Tuesday, having been unable to react to US data releases.
Key Quotes:
“The pair maintains the negative tone seen on previous updates, although the Japanese yen will have a hard time strengthening beyond the 120.00 level against the greenback, a critical psychological level.”
Anyway, the pair will likely remain on hold until the release of the latest US Nonfarm Payroll report early January. In the meantime, the 4 hours chart shows that the moving averages have accelerated their declines well above the current level, while the technical indicators lack directional strength within neutral territory, all of which should at least keep the upside limited. Sellers will likely contain rallies between 120.70 and 121.00, while a clear break below 120.00 is required to confirm additional short term declines, towards the 119.60 price zone.”
(Market News Provided by FXstreet)