USD/JPY Struggling to Extend Recovery Beyond 111.50
The USD/JPY pair is seen treading water around the mid-point of 111 handle, making minor recovery attempts from session lows amid mixed sentiment persisting on the markets.
Yen unperturbed by rising expectations of more BOJ easing
The Japanese currency kept the bid tone intact against the US dollar in the Asian trades for the second straight session, despite increasing expectations of additional BOJ stimulus after a Japanese survey showed that the domestic companies’ long-term inflation expectations weakened in March quarter. At the time of writing, USD/JPY recovers to 111.53, still down -0.16% on the day.
However, the recovery lacks follow through as a renewed bout of risk-aversion hit markets on the back of persistent weakness in the oil prices, which led the Nikkei to revert to the negative territory. Meanwhile, both crude benchmarks are down nearly 1%, while the Nikkei drops -0.20% to 16,130 points.
Ahead in the day, markets will continue to monitor the sentiment surrounding the oil and stock markets, while the US factory orders and LMCI will be watched for further incentives on the US dollar.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 111.95/112 (5-DMA/ round number). A break above the last, the major could test 112.66/71 (Mar 31 High/ 1h 200-SMA). While to the downside, the immediate support is seen at 111.36/20 (Mar 22 & 21 Low) and below that at 111/ 110.80 (Mar 18 Low).
(Market News Provided by FXstreet)
