USD/JPY Finds Solid Support Just Ahead of 111
The bears appear to loosen their grip on the USD/JPY pair, allowing a minor pullback from 111 handle once again amid risk-off market profile.
USD/JPY gives up almost 90-pips intraday
The dollar-yen pair is seen consolidating the renewed sell-off to daily lows (111.03), as markets weigh the latest comments from Japanese finance minister amid broad based US dollar retreat. At the time of writing, USD/JPY hovers around 111.25, still down -0.42% on the day.
Moreover, persisting risk-off sentiment as poor corporate news and lower oil prices weighing on the European equities, also helps keep the demand for the safe-haven JPY intact. Germany’s DAX drops -1.31%, the UK’s FTSE slides -0.60%, while the pan-European benchmark, the Euro Stoxx 50 sinks nearly 1%.
Next on tap for the major remains the US homes sales due later today before the release of Tuesday‘s durable goods data. While the FOMC and BOJ policy decision remain the main market moving events for the major this week.
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 110.74 (5-DMA) and below that at 110.01/109.82 (20-DMA/ 1h 100-SMA).