USD/JPY exhausted after breakout; stalls at 98.10 front

FXstreet.com (Chicago) - USD/JPY stalls after rally in the afternoon of the American trading session sustaining gains above the 98.00 front and printing 0.44% daily gains so far.

Results recap

In the US, retail sales were -0.1% (MoM) vs. expected 0.1%. The consumer confidence index was 71.2 vs. expected 75.0 and prior 80.2. In Japan, earlier data surprised positively with an unemployment rate matching expected 4.0% and retail trade better than expected at 3.1% vs. estimates at 1.9%.

USD/JPY Technical Levels


Price action reveals heavy buying throughout Tuesday’s session with a steeper speed line extending the upward trendline from last October 25th. After coming back above the 98 skies, the pair flies on horizontal line at 98.13. On the downside, supports are aligned at 98 (October 11th lows), 97.71 (October 17th lows) followed by 97.53 (October 18th lows) and the upside prints resistances set at 98.47 (October 22nd highs), 98.70 (October 15th highs) followed by 99 (October 17th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and trades above the EMA20.

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