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).
