USD/JPY Making Another Attempt Towards 109?
pair caught fresh bid-wave in the Asian morning this Wednesday, making a
fresh recovery attempt in a bid to conquer 109 once again.
USD/JPY: Yen extends weakness into 2nd day
The dollar-yen pair found fresh bids near the mid-point of 108 handle in early trades, and embarked upon its journey towards 109 barrier once again, having taken out Tuesday’s high reached at 108.79 some minutes ago. At the time of writing, USD/JPY eases-off session highs printed at 108.82 last minutes to now trade at 108.75, still up +0.77% on the day.
The risk-on rally in the Asian equities, particularly the Japanese stocks, refuelled the recovery mode in the major. However, the upside remains restricted as markets trade cautiously ahead of the Chinese trade balance numbers due for release any time post 2GMT.
Besides, the Chinese trade data, focus also remains on the US retail sales and PPI releases due later today for fresh direction on the major. While Thursday’s inflation report from the US economy also remains on the investors’ minds.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 109/109.11 (round number/ Apr 8 High). A break above the last, the major could test 109.31/33 (10-DMA/ daily R2). While to the downside, the immediate support is seen at 108.51/44 (daily low/ pivot) and below that at 108.09/00 (daily S1).
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