22.02.2019

USD/JPY is shaping up into a heavy looking formation on the charts, weighed upon by a neutral tone from the Fed and a disappointing run of US data from overnight trade.  US data disappoints, underpinning the Fed on hold for longer sentiment

Equally, uber dove St. Louis Fed president Bullard said normalization is coming to an end and the December hike may have gone too far. However, US yields were on the rise though which leant some support to the dollar and likely so as markets were expecting a slightly more dovish outcome in the FOMC yesterday. The US 10yr treasury yield rose from 2.64% in Sydney trade to 2.69%, while the 2yr yield rose from 2.50% to 2.53%.  Key statements form FOCM minutes, (Source LiveSquawk):

USD/JPY levels Valeria Bednarik, Chief Analyst at FXStreet explained, from a technical point of view, the short term picture continues offering a neutral-to-positive stance:

 “In the 4 hours chart, the pair keeps developing above its moving averages, which offer modest upward slopes, as technical indicators hold within positive levels, the Momentum bouncing from its mid-line and the RSI directionless around 56. The pair could extend its decline once below 110.45, although it would need to lose 109.80 to turn bearish, while bulls could take over the pair on a break above 111.12, the yearly high.”

Original from: www.fxstreet.com