USD/JPY Fades a Spike to 109.60; Yen Recovers Amid Risk-Off
A renewed spurt of buying interest in the USD/JPY faded over the last hours, as the demand for yen resurfaced as the European stocks turned lower in sync with oil.
USD/JPY fails once again above 109.50
The dollar-yen pair failed to sustain at higher levels and retreated from near Tuesday’s high as risk sentiment came under mild pressure in Europe after oil prices turned negative and sent the European stocks lower.
However, further upside bias towards 110 mark remains intact as the US dollar continues to hover around fresh three-week tops against its major peers, as we progress towards the mid-European session. At the time of writing, USD/JPY trades +0.22% higher at 109.35, retreating from session tops posted at 109.60.
Later today, the minutes from the April FOMC meeting will be published and should be of major importance as it might throw light on the committee’s stance on the US interest rates outlook.
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 (psychological levels/ 20-DMA).