USD/JPY Ignored Uptick in US Import Price Index
Bid tone around USD failed to strengthen despite rise in the US import price index, leaving USD/JPY largely unaffected around 108.30.
Corrective move stalled near 5-DMA
Corrective
rally that gathered pace following a break above hourly 50-MA hurdle
earlier today appears to have run out of steam as prices neared 5-DMA
level of 108.44 levels. Moreover, the momentum failed to pick up pace
even though data released in the US showed import price index turned
positive for the first time since June 2015.
Slightly hawkish comments from Fed’s Kaplan
were ignored as well. Technical traders would be interested to see if
the spot manages to sustain above hourly 50-MA. Comments from Fed’s
Harker would be watched out as well.
USD/JPY Technical Levels
The
immediate hurdle is noted at 108.44 (Apr 11 high + 5-DMA), above which
prices could target 108.53 (hourly 100-MA). A violation there would
expose 109.00 levels. On the other hand, a break below 108.12 (hourly
50-MA) would shift risk in favor of a drop to 107.66 (last week’s low).
Next major support is seen at 106.65 (38.2% of 2011 low – 2015 high).
News provided by: 
