USD/JPY to recover bullish potentil above 107.30

The USD/JPY pair is trading with modest gains above the 107.00 figure and losing its bearish potential but still far from bullish while below the 107.30 resistance, FXStreet’s Chief Analyst Valeria Bednarik informs.

Key quotes

“The 4-hour chart shows that the USD/JPY pair is now above a directionless 20 SMA, but still below the larger ones. Technical indicators, in the mentioned time-frame, lack directional strength, hovering around their midlines.” 

“The neutral stance would persist unless USD/JPY manages to advance beyond the 23.6% retracement of its latest daily decline at around 107.30, the immediate resistance level.”

“Japan released the preliminary estimate of June Jibun Bank Manufacturing PMI which, came in at 37.8, better than the 36.9 forecast but below the previous 38.4. [...] After Wall Street’s opening, Markit will publish the preliminary estimate of the June US Manufacturing PMI, foreseen at 48 from 39.8 previously, and the Services PMI for the same month, expected at 46.5 from 37.5 in May.”