USD/JPY Recovery Stalls at 109.50 Amid Broad USD Weakness
USD/JPY Recovery Stalls at 109.50 Amid Broad USD Weakness
Fresh offers emerged at 109.50 levels in the last hour, capping the recovery in the USD/JPY pair from ahead of hourly 100-SMA as the US dollar corrected lower across the board.
USD/JPY faces stiff resistance near 20-DMA
Despite
upbeat US jobless claims data released yesterday, the US dollar
continues to remain under pressure against the Japanese currency as
traders continue to track the persistent risk sentiment lately, with
fundamentals virtually having limited impact on the major. At the time
of writing, USD/JPY trades modestly flat at 109.40, having posted day’s
low at 109.27 and day’s high at 109.50.
The major brought an end
to its recovery phase and fell further into losses in tandem with the
Japanese stocks. The Nikkei 225 index now drops -0.35% versus -0.09%
seen earlier today. Moreover, the recovery in the oil prices appears to
lose steam, which also adds to the bearish sentiment surrounding
USD/JPY. While broad based US dollar correction after a two-day rally
also collaborates to the losses in the major. The USD index drops -0.14%
to 94.49 levels.
Looking ahead, the prices will continue to get
influenced by the broader market sentiment in absence of significant
economic releases today.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 109.90/110
(Apr 20 High/ round number). A break above the last, the major could
test 110.50/64 (psychological levels/ Apr 6 high). While to the
downside, the immediate support is seen at 109.09/00 (10-DMA/ round
figure) and below that at 108.74/73 (Apr 20 & 19 Low).
