USD/JPY Consolidating Below 111 Ahead of US Data
The yen continues to keep the upper edge against its American peer in the European session, with USD/JPY oscillating in a tight range below 111 handle.
USD/JPY finds support near 110.65
The
dollar-yen pair keeps losses and remains in a wait-and-see mode below
111 handle as markets now turn towards the US economic release for fresh
impetus on the major. At the time of writing, USD/JPY attempts recovery
from 110.67 lows and now trades around 111.85, still down -0.28% on the
day.
The offered tone around USD/JPY can be also attributed to
the mixed sentiment on the European stocks, as market adopt a cautious
tone ahead of the FOMC and BOJ policy decisions due later this week.
Markets are expecting the Fed to stay on hold this week and talk up June
rate hike prospects; while on the other hand BOJ is likely to do more
easing in wake of subdued underlying price trends.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 111.73/88
(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 110.67/50 (daily low/ psychological levels) and below that at
110.29/09 (1h 100-SMA/ 10-DMA).
