USD/JPY analysis: positive, but 112.00 caps for now

USD/JPY analysis: positive, but 112.00 caps for now

USD/JPY Current price: 111.38

The USD/JPY pair surged to its highest for this April, printing 111.77, before giving up some its daily gains, still closing in the green. The pair got a boost from a recovery in US Treasury yields, although they later give up after the US government announcement on the tax reform. The 10-year yield benchmark traded as high as 2.33% intraday, but pulled back to 2.31% after ahead of the close, weighing on the pair by the end of the US afternoon. The Bank of Japan will have its monthly monetary policy meeting during the upcoming Asian session, but is expected to maintain the status quo unchanged, with the pair’s traders more focused on Thursday’s US Durable Goods Orders for March. The positive tone of US equities, helped the pair to hold on to gains by the end of the day, although it’s not enough to guarantee a similar advance in Asian equities. From a technical point of view, the 4 hours chart shows that the price held above its moving averages, with buying interest aligned around the 200 SMA, currently around 111.00, whilst technical indicators retreated modestly from  extreme overbought readings, but are far from turning lower. Still, the pair needs to regain the 112.00 threshold to be able to extend its advance towards the 113.00 region.

Support levels: 111.05 110.65 110.20

Resistance levels: 112.00 112.45 112.85