USD/JPY: The rally stalled well below 107.00

Japan’s return to the action after a long holiday saw the yen giving up some ground as the USD/JPY pair recovered to the 106.50 price zone where it currently stands, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“Japan’s Monetary Base increased by 2.3% YoY in April, worse than the 3.2% expected and below the previous 2.8%. The focus is now on US employment data, ahead of the Nonfarm Payroll report to be out this Friday.”

“The upside seems limited for the USD/JPY pair, as, in the 4-hour chart, it remains below a mildly bearish 20 SMA. The larger moving averages stand well above the current level, with modest downward slopes.” 

“Technical indicators have recovered from oversold levels but turned directionless just below their mid-lines.”