USD/JPY Struggles with 109 Handle as Nikkei Pares Gains
pair is seen wavering below 109 handle since mid-Asia, unable to regain
the last as persisting risk sentiment appears to taking a beating amid
mixed Asian markets.
USD/JPY holds above 5-DMA
The dollar-yen pair failed to sustain gains above 109 barrier and fell in the red as sentiment soured somewhat after the Chinese stocks extended losses, capping the upside in their Asian counterparts. At the moment, the USD/JPY pair trades modestly flat at 108.98, bouncing-off a dip to lows near 5-DMA at 108.86.
The major now treads water as the bulls remain on the back foot heading into a flurry of US economic releases due later in the NY session, and hence, refrain from placing big bets on the USD/JPY pair. Later today, the US session sees the release of the US CPI, industrial production and housing data, which is expected to provide fresh hints on the strength of the US economic recovery.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 109.36/50 (May 10 & 13 High). A break above the last, the major could test 109.87/110 (50-DMA/ psychological levels). While to the downside, the immediate support is seen at 108.50/35 (20-DMA) and below that at 108.00 (round number).