USD/JPY: Sour outlook

USD/JPY is hovering in the 109.70/80 region after Japan released mixed economic data. Technically, the pair is neutral in the short-term, according to Chief analyst at FXStreet Valeria Bednarik.

Key quotes

“Japanese data released at the beginning of the day was mixed, as the January Eco Watchers Survey on the current situation came in at 41.9, beating the market’s expectations, although the survey on the outlook deteriorated to 41.8. The December Trade Balance printed a surplus of ¥120.7B, recovering from a ¥-2.5B in the previous month, although the Current Account surplus contracted to ¥524B.”

“The USD/JPY pair is neutral in the short-term, as, in the 4-hour chart, it is above its larger moving averages, but unable to surpass an also flat 20 SMA. A recovery seems unlikely, with sellers aligned around the 110.00 figure.”

“Support levels: 109.40 109.00 Resistance levels: 110.00 110.35”