USD/JPY Reverses Sharply, Attacks 111 Again
The USD bears fought back control in the Asian trades at the start of the big week ahead, sending USD/JPY sharply lower from two-week tops reached just shy of 112 barrier last Friday.
USD/JPY sold-off ahead of 50-DMA at 111.80
The yen caught a fresh bid-wave against the American dollar in the early Asian morning, largely on the back profit-taking, after having hit fresh two-week lows at 111.88 levels in opening trades. At the time of writing, USD/JPY extends further to the downside in a bid to retest daily low reached just ahead 111 handle, down -0.55% on the day.
The traders sold-off the US dollar across the board on rebalancing their positions ahead of the crucial FOMC and BOJ monetary policy meetings. Meanwhile, thin markets prevail in the Asian session and a lack of relevant economic news, leaves the USD/JPY pair at the mercy of the sentiment around the oil and stock markets.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 111.80/88 (50-DMA/ 2-week tops). A break above the last, the major could test 112 (psychological levels). While to the downside, the immediate support is seen at 110.76 (5-DMA) and below that at 110.01/109.82 (20-DMA/ 1h 100-SMA).