FxWirePro: USD/JPY Extends Recovery from 5-Week Lows, Struggles at 107 Handle

FxWirePro: USD/JPY Extends Recovery from 5-Week Lows, Struggles at 107 Handle

10 June 2016, 08:55
Roberto Jacobs
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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. 

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