USD/JPY Bounces-Off 109 in Early Europe, Fed Minutes Eyed
pair bounced-off a dip to 109 handle and almost regained lost ground as
the US dollar continues to hover near two-week tops amid recovering
USD/JPY retesting daily highs?
The dollar-yen pair fought back the bids and now heads for a retest of daily tops reached at 109.38 earlier today, as European traders hit their desks and continue to bid the greenback in wake of the recent upbeat US CPI, industrial production and housing starts data released Tuesday.
Moreover, with risk sentiment having recovered towards the Asian session close, also triggered buying interest in the major. At the time of writing, USD/JPY trades +0.06% higher at 109.23, finding strong offers around 109.50 levels. All eyes now remain on the Fed minutes amid a lack of fresh fundamental triggers due later this session. In the meantime, the sentiment surrounding oil and stocks will also play a key role.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 109.79/110 (50-DMA/ psychological levels). A break above the last, the major could test 110.50 (round figure). While to the downside, the immediate support is seen at 108.71 (10-DMA) and below that at 108.50/35 (20-DMA).