USD/JPY Regains 107.00 but Hovers Near 18-Month Lows
USD/JPY
extended weakness on Friday and broke below April lows to set a fresh
18-month trough as investors continue to assess BoJ and Fed decisions.
USD/JPY
fell below the 107 mark and scored its lowest level since October 2014
at 106.89 before recovering some ground. At time of writing, the pair is
trading at 107.35, still 0.68% below its opening price.
On the data front, US personal consumption expenditures price index,
the Fed's preferred inflation measure, rose by a modest 0.1% in March
and 0.8% over the year. Personal income rose 0.4% (+0.3% expected) and
personal spending increased by 0.1% (+0.2% exp). The Chicago PMI edged
down to 50.3 vs 52.6 expected.
USD/JPY levels to watch
In
terms of technical levels, next supports for USD/JPY are seen at 106.89
(18-month low, Apr 29), 106.24 (Oct 21 2014 low) and 106.00
(psychological level). On the flip side, next resistances could be found
at 107.62 (former support), 108.19 (Apr 29 high) and 109.50 (20-day
SMA).
