FxWirePro: USD/JPY recovers from monthly lows, focus on UMitch Consumer Sentiment Index

USD/JPY chart - Trading View 

USD/JPY is trading 0.34% higher on the day at 107.65 at 11:15 GMT. The pair has edged higher from monthly lows at 107.21.

Dovish comments from Fed's Williams on Thursday weighed on the UST yields and dented the dollar.

Williams said that the central bank needed to “act quickly” when the economy was slowing and rates were low. 

The 10-year UST yields fell almost seven basis points to 2.01% and the probability of the Fed cutting rates by 50 basis points on July 31 rose to 42%. 

US dollar recovered on the day after the New York Fed’s clarification that President Williams’ comments were academic and not about immediate policy direction.

Technical bias remains bearish. 5-DMA is immediate resistance at 107.81. Bearish invalidation only above 55-EMA. 

Lower Bollinger band is immediate support at 107.07. Resumption of weakness will see test of 78.6% Fib at 106.31. 

Broader market sentiment could influence price action. Focus also on the US Michigan Consumer Sentiment Index (July), expected 98.5 versus 98.2 prior.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.