USD/JPY to recover bullish potential on a break above 110.60

The USD/JPY pair keeps recovering from Monday’s slump, currently trading in the 110.50 price zone as the dollar recovers, but it needs to rise above 110.60 to gain bullish potential, FXStreet’s Chief Analyst Valeria Bednarik briefs. 

USD/JPY is mildly positive in the near-term 

“Japan published February Labor Cash Earnings, which printed at -0.2% YoY, and Overall Household Spending, which fell by 6.6% YoY, much worse than the -2.1% expected. The US has a light macroeconomic calendar, as it will only publish April IBD/TIPP Economic Optimism and February JOLTS Job Openings.”

“From a technical point of view, the near-term picture indicates that further advances are unlikely at the time being. In the 4-hour chart, the pair is unable to surpass a bearish 20 SMA, while technical indicators head higher but within neutral levels.”

“Bulls may have better chances if the price breaks above 110.60, the immediate resistance level.”