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).