FxWirePro: USD/JPY Extends Recovery from 5-Week Lows, Struggles at 107 Handle
- USD/JPY is extending recovery from 5-week lows of 106.25 hit on Thursday, is currently struggling at 107 handle.
- Asian markets stabilize after initial sell-off, curbing the safe-haven demand for the Japanese currency.
- Narrow range on the day till now, pair made a high of 107.25 and low of 106.90.
- Upside seen capped by 5-DMA at 107.25, break above can see further upside.
- Focus now on US prelim consumer sentiment data due later in the NA session ahead of next week’s Fed and BOJ policy decisions.
- A series of Chinese macro releases due this weekend may have significant impact on the risk sensitive yen markets.
- Immediate support and resistance are seen at 106.40 (trendline) and 107.20 (5-DMA) respectively.
Techs are inconclusive, we prefer to remain on the sidelines for now.