USD/JPY: Uptrend is not confirmed

Receding coronavirus concerns have played against the safe-haven yen, but also limited dollar’s bullish potential against other major rivals. As Chief analyst at FXStreet Valeria Bednarik notes, pair’s technical indicators lack directional strenght.   

Key quotes

“The USD/JPY pair has hit a February high of 110.12, holding around the 110.00 figure in the current London session.” 

“Japan released the preliminary estimate of January Machine Tool Orders, which plummeted a 35.6%, after losing in December 33.6%.” 

“The USD/JPY pair is neutral-to-bullish according to the 4-hour chart, as it continues to develop above all of its moving averages, which anyway lack directional strength.”

“The pair topped at 110.28 in January and would need to advance beyond the level to confirm a bullish stance.”