USD/JPY breaking to the upside to test 50 SMA

By FXStreet FXStreet (Guatemala) – USD/JPY is currently trading at 119.92 with a high of 119.95 and a low of 119.74.

Nikkei is up 2% for the session and USD/JPY is up to test the vicinity of the 50 SMA on the hourly chart at 119.96. A break of 120 would put the major in the region of the 200 SMA and bring back a bullish plan for the 200 DMA that has been a pivotal level for the past number of weeks now while the pair trade between that as a major resistance and the 119.20 supporting area.

Data was mixed, mostly negative for Japan. Retails trade y/y 0.8% vs 1.2% expected and vs pre 1.6%. m/m 0% vs 0.5% and 1.2% prev. However, large retailers improved on expectations m/m 1.8% vs 1.3% but lower than prev 2.1%. Industrial production were also lower than both expectations and previous.

USD/JPY key levels

Technically, USD/JPY has been unable to break its consolidation range during September, as noted by analysts at Westpac Banking Corporation who have suggested that a break of 119.25/35 or 120.95/05 is key to direction.
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Source:: FX Street