USD/JPY Recovery Stalled Near 109.20, Bulls Exhausted?
The USD/JPY pair
is seen consolidating its robust recovery from near seventeen-month
lows over the past few hours, with the rate hovering around 109 barrier.
USD/JPY trades above all major DMAs
Amid
a better risk environment in Asia this Tuesday, the dollar-yen pair
keeps range at higher levels, although the overnight recovery appears
capped ahead of 109.20 region. At the time of writing, USD/JPY struggles
to hold above 109 handle, up 0.23% on the day.
The bulls take a
breather and consolidate the heavy gains before the next push higher, as
the rebounding Asian stocks continue to lift the sentiment and hence,
diminish the safe-haven bids for the yen. However, the upside seems
capped largely on the back broad based US dollar weakness, while a
retreat in the oil prices also keeps the prices in check. Whilst, the
USD index loses -0.08% to 94.37, both crude benchmarks are seen about
-0.50% lower.
Meanwhile, the major will continue to track the
broader market sentiment ahead of the US building permits and housing
starts data, which may provide fresh incentives on the pair. Further,
the Japanese trade balance due tomorrow will be also eyed for any impact
on USD/JPY.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 109.22/55
(daily high & R1). A break above the last, the major could test
109.77/110.04 (Apr 15 high/ 20-DMA). While to the downside, the
immediate support is seen at 108.71/65 (1h 200-SMA/ 10-DMA) and below
that at 108.57/50 (Apr 15 low/ psychological levels).
