USD/JPY Recovers a bit, 107.00 Level Eyed for Further Recovery
USD/JPY Recovers a bit, 107.00 Level Eyed for Further Recovery
On Monday, the USD/JPY pair has managed to register some minor recovery from 106.00 vicinity to currently trade near 106.55 level.
Following
BoJ's decision to stand pat, the pair got slumped over 5% in just two
trading sessions, touching its lowest level since Oct. 2014. The pair
also failed to find support from a report that showed US inflation as
measured by the PCE index, the Fed's preferred inflation barometer,
continues to hover below the Fed's 2% target range. On Monday, traders
will now take further cues from the US ISM manufacturing PMI data,
scheduled for release during the US session.
Technical levels to watch
Further
recovery beyond 107.00 handle might now confront immediate resistance
near 107.65-70 area, which if conquered opens room for additional
recovery in the near-term.
Alternatively, resumption of the
pair's weakening trend and a subsequent drop below 106.00 mark has the
potential to continue dragging the pair in the near-term, towards its
next major support near 105.00 region.
