USD/JPY Bounces-Off 50-DMA Support, Re-Attempts 110?
The USD/JPY pair
is seen making minor-recovery attempts from a drop to 50-DMA support
located at 109.65, as markets digest the latest comments from the BOJ
officials amid weaker Japanese datasets.
USD/JPY catches fresh bid near 3-day low
The dollar-yen pair is recovering ground somewhat, having dipped sharply
in the overnight trades from above 110 handle, as the yen came renewed
selling pressure after BOJ Governor Kuroda noted that the central is
prepared to ease further whenever required. While BOJ deputy governor
Nakaso’s speech underscored concerns over the ongoing effects of the
accommodative policy on the Japanese economy.
Moreover, weaker Nikkei Japanese manufacturing PMI reading combined with
poor domestic exports/imports data also helped rescue the bulls. Japan
Nikkei PMI manufacturing came in at 47.6 vs 48.2, hitting the lowest
level since Dec 2012. Meanwhile markets continue to mull over weekend’s
G7 meeting outcome, with Japan’s Aso comments on the JPY, still lurking
on investors’ minds. At the time of writing, USD/JPY trades at 109.82,
moving-off three-day lows reached at 109.64 earlier on the day, still
down -0.34%.
The week ahead has a lot in stored for the major, in terms of economic
news, with the durable goods and GDP figures from the US, Japanese CPI
data and Fed Chair Yellen’s comments expected to remain in the
spotlight.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 110.02
(5-DMA). A break above the last, the major could test 110.50/59
(psychological levels/ 3-week top). While to the downside, the immediate
support is seen at 109.50/295 (psychological levels/ 1h 200-SMA) and
below that at 109.00 (round number).