USD/JPY Bounces-off 111, Tests 5-DMA Before FOMC
The US dollar managed to recover losses versus its Japanese counterpart in the European session, now pushing USD/JPY to fresh daily highs on 111 handle.
USD/JPY finds support ahead of 111 handle
Having found solid support ahead of 111 barrier once again, the dollar-yen pair re-attempted a pullback towards 5-DMA located at 111.38 amid an improved risk tone on the European markets. At the time of writing, USD/JPY trades almost unchanged at fresh session highs of 111.33, while Germany’s DAX advances +0.21% and the pan-European benchmark, the Euro Stoxx trades modestly flat around 3,125 points.
Moreover, markets prefer to hold the US currency before the Fed rate decision as its widely expected that the Fed may talk up June rate hike, which is likely to provide much-needed relief to the major.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 111.70/88 (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 110.66/50 (Apr 26 Low/ psychological levels) and below that at 110.29/00 (10-DMA/ round number).