USD/JPY: Bears Take a Breather, Selling Stalls Near 108.50
The bears took a breather from the ongoing downward spiral, allowing a minor recovery in USD/JPY from session lows just near the mid-point of 108 handle.
USD/JPY re-attempts 109 handle?
The
dollar-yen pair stages a minor-pullback in the European session, having
found renewed bids just ahead of 108.50 levels, as the yen buying
paused for a while amid stabilizing European equities as well as oil
prices. At the moment, the USD/JPY pair recovers to 108.70, still down
-0.57% on the day.
Looking ahead, the prevalent risk-off/on
sentiment is likely to dominate the USD/JPY moves, in absence of
significant US economic releases due later today.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 109 (round
number). A break above the last, the major could test 109.50 (post-BOJ
highs). While to the downside, the immediate support is seen at 108.50
(psychological levels) and below that at 108.13/107.97 (5-DMA/ 1h
100-SMA).
