USD/JPY Drops Below 109.50
The yen gained momentum across the board during the American session and pushed USD/JPY back below 109.50. Earlier the pair climbed to 109.89 hitting a new 2-week high but then reversed.
Recently it reached a fresh daily low at 109.32 and it was trading slightly below 109.50, down 35 pips from yesterday’s closing price. Greenback is losing ground versus the yen after a three-day rally when the pair rose from 107.80.
USD/JPY limited below the 20-day moving average
Rallies continue to be limited below the 110.00 area and also by the 20-day moving average that currently stands at 110.20. The recent rally appears to be a corrective rally. Above 110.20, the US dollar needs to rise aback on top of 111.50 - 112.00, to recover some key levels and to signal a possible temporal floor and a potential double bottom formation at 107.60/80.