Chart - Courtesy Trading View
USD/JPY was trading unchanged at 115.29 at around 07:15 GMT, with session high and low at 115.40 and 115.23 respectively.
US dollar fell sharply on Tuesday, following comments from US Federal Reserve chief Jerome Powell, DXY closed 0.36% lower.
In the hearings before the Senate, Powell mixed a hawkish view of the economy with a cautious approach to the reduction of the balance sheet.
USD/JPY slipped lower from session highs at 115.68 to close at 115.12 on Tuesday's trade. Bias is turning bearish.
Price action has slipped below 200H MA. Stochs show bearish rollover from overbought levels. MACD is on verge of bearish crossover on signal line.
Major Support Levels:
S1: 115
S2: 114.93 (21-EMA)
S3: 114.85 (20-DMA)
Major Resistance Levels:
R1: 115.41 (5-DMA)
R2: 115.57 (200H MA)
R3: 116
Summary: USD/JPY intraday bias is bearish. Focus on US inflation data for impetus. Analysts at Danske Bank expect US inflation is unlikely to change the hawkish Fed outlook. A positive risk tone undermined the safe-haven JPY and limited downside in the pair. Dip till 21-EMA likely, break below 21-EMA could see further weakness.
