USD/JPY Recovers to Trade Back Above 109.00 Level
Yen continues to surge on risk aversion with the USD/JPY pair dipping below 109.00 handle before staging a minor recovery to currently trade around 109.30 level.
The ongoing risk-off sentiment continues to boost the safe-haven appeal of the Japanese currency. Moreover, concerns over fragile global growth and diminishing prospects of a June Fe-rate-hike also seem to drag the pair lower.
Traders now shift the focus towards today's ECB monetary policy decision ahead of Friday's US monthly jobs data for near-term direction. In the meantime, the pair would take cues from the risk sentiment driving European equity markets.
Technical levels to watch
On a sustained weakness back below 109.00 handle, the pair seems to slide further towards 108.60-50 horizontal support. A decisive break below 108.50 support has the potential to continue dragging the pair below 108.00 level, towards its next major support near 107.50 region.
Conversely, recovery beyond day's peak level of 109.50 is likely to get extended towards 110.00 handle, which if conquered should assist the pair further towards 110.45-50 resistance area.