FxWirePro: USD/JPY recovers from session lows amid risk-off market profile, bias neutral

USD/JPY chart on Trading View used for analysis

• USD/JPY has recovered from session lows at 108.83 and is currently trading at 109.05 levels.
   
• Stock market rally likely put a bid under the greenback overnight, supporting USD/JPY higher.
   
• With no progress being seen for either the US government shut down or the US-China trade talks, we see limited scope for further upside.
   
• The Bank of Japan (BoJ) Governor H. Kuroda at a speech at the G20 Symposium, in Tokyo, made no remarks on the monetary policy or economy.
   
• Technical indicators are also neutral. Major trend in the pair is bearish.
   
• Immediate resistance is seen at 20-DMA at 109.50. Decisive break above could see minor upside.
   
• With scheduled US data releases suspended as a result of the government shutdown, markets sentiment likely to remain the main driver.

Support levels - 108.70 (5-DMA), 107.77 (Jan 10 low)

Resistance levels - 109.50 (20-DMA), 110

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