Яндекс.Метрика USD/JPY holds lower amid early yen strength, what levels to look out for today? – Technologies of the future for life!
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USD/JPY holds lower amid early yen strength, what levels to look out for today?


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The yen is a little firmer in early trades today


ForexLive

With Treasuries trading closed (Tokyo holiday) so far today, there isn’t much for traders to go on but we are seeing some slightly more cautious positioning with the yen being bought up in early trades. That said, this is very much a continuation from what we were seeing towards the second-half of last week.
Sellers remain in near-term control as price sits below both key hourly moving averages as well as the trendline resistance from the week before.
There isn’t much on the economic calendar today to shake things up, so trading sentiment today will be largely dictated by the ebb and flow.
So, what levels can we look out for today in USD/JPY?
Of note, there are large expiries rolling off at 105.00 and 105.50 so these two levels will be key areas of interest considering the slower day. The latter is a level at play at the moment so keep an eye on that ahead of the 1400 GMT roll off.
As for downside levels, be wary of yesterday’s low @ 105.27 as well as bids lined-up around the 105.00 handle. The latter in particular will be the key spot to watch for any further downside break in the pair later this week.
Meanwhile, for buyers, more work needs to be done. The first thing they need to do is to get back above the near-term trendline resistance @ 105.73. Thereafter, they have to work towards challenging the 100-hour MA (red line) @ 106.04.
As long as sellers remain below the key hourly moving averages (100-hour MA tested twice last week), there is still good reason to expect the pair to head lower given trade and global economic developments recently.

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