USD/JPY Recovery Stalls at 109.50 Amid Broad USD Weakness

USD/JPY Recovery Stalls at 109.50 Amid Broad USD Weakness

22 April 2016, 06:16
Roberto Jacobs

USD/JPY Recovery Stalls at 109.50 Amid Broad USD Weakness

Fresh offers emerged at 109.50 levels in the last hour, capping the recovery in the USD/JPY pair from ahead of hourly 100-SMA as the US dollar corrected lower across the board.

USD/JPY faces stiff resistance near 20-DMA

Despite upbeat US jobless claims data released yesterday, the US dollar continues to remain under pressure against the Japanese currency as traders continue to track the persistent risk sentiment lately, with fundamentals virtually having limited impact on the major. At the time of writing, USD/JPY trades modestly flat at 109.40, having posted day’s low at 109.27 and day’s high at 109.50.

The major brought an end to its recovery phase and fell further into losses in tandem with the Japanese stocks. The Nikkei 225 index now drops -0.35% versus -0.09% seen earlier today. Moreover, the recovery in the oil prices appears to lose steam, which also adds to the bearish sentiment surrounding USD/JPY. While broad based US dollar correction after a two-day rally also collaborates to the losses in the major. The USD index drops -0.14% to 94.49 levels.

Looking ahead, the prices will continue to get influenced by the broader market sentiment in absence of significant economic releases today.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 109.90/110 (Apr 20 High/ round number). A break above the last, the major could test 110.50/64 (psychological levels/ Apr 6 high). While to the downside, the immediate support is seen at 109.09/00 (10-DMA/ round figure) and below that at 108.74/73 (Apr 20 & 19 Low).


Share it with friends: