USD/JPY Looking to Regain 108.50
The upside momentum around the Japanese currency now seems to be taking a breather, with USD/JPY hovering over the mid-108.00s.
USD/JPY supported at 108.00… for now
The pair has accelerated its downside to levels last seen in October 2014 around the 108.00 mark after several Japanese officials have practically ruled out FX intervention in the near term in order to stem JPY strength.
Uncertainty and a bearish bias in the greenback following yesterday’s FOMC minutes are also collaborating with the pair’s pullback, ahead of US Initial Claims and speeches by Chief J.Yellen and KC Fed’s E.George.
USD/JPY levels to watch
As of writing the pair is retreating 1.20% at 108.47 and a break below 108.03 (2016 low Apr.7) would open the door to 105.18 (monthly low Oct.2014) and finally 100.74 (monthly low Feb.4 2014). On the flip side, the initial up barrier is located at 112.09 (20-day sma) ahead of 112.57 (high Mar.29) and then 113.81 (high Mar.29).
(Market News Provided by FXstreet)