USD/JPY Regains Momentum, Back Above 107 Handle
The USD/JPY pair
is once again taking on the recovery above 107 handle, reversing a
brief dip to session lows struck at 106.53, on the back of a
minor-pullback in the Asian equities, while the absence of the Japanese
traders exaggerates the moves in the major.
USD/JPY re-takes 107.45
The
dollar-yen pair regained momentum and resumed its recovery mode from
eighteen-month troughs as the selling across the Asian markets appear to
have stalled amid thin trades and limited volatility as the Japanese
markets remain closed on account of public holidays until Friday. At the
time of writing, USD/JPY trades at 107.09, recording a 0.38% gain on
the day, while Australia’s ASX 200 now drops -0.95% versus -1.20% seen
earlier and the Chinese equities trade marginally lower.
Earlier
this session, the major spiked to daily highs at 107.45 as stops
triggered after the rate surpassed 107 barrier. While markets speculated
that the move could be in response to some BOJ intervention, although
nothing could be confirmed on the same and it looked more of stops
triggered above 107 levels.
With the US dollar swinging back
higher across board, the ongoing recovery mode is likely to extend ahead
of the US ADP jobs. ISM non-manufacturing PMI and factory orders data
lined up for release later in the NY session.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 107.45/50
(daily high/ psychological levels). A break above the last, the major
could test 108/108.20 (Apr 29 High). While to the downside, the
immediate support is seen at 106.58/53 (5-DMA/ daily low) and below that
at 106 (round number).
