FxWirePro: USD/JPY neutral in the near-term, scope for downward resumption
USD/JPY dipped on Wednesday as investors preferred safe haven assets such as Japanese yen ahead of a series of economic and political events on Thursday. Three key events -- UK elections, a European Central Bank policy m…
USD/JPY dipped on Wednesday as investors preferred safe haven assets such as Japanese yen ahead of a series of economic and political events on Thursday.
Three key events -- UK elections, a European Central Bank policy meeting and testimony by former FBI director James Comey -- are all set for Thursday.
UK polls have been mixed suggesting outcomes ranging from a majority for Prime Minister Theresa May's party to a 'hung' parliament in which no party has an overall majority.
While the ECB is unlikely to start to wind back its expansive stimulus programme given waning global inflation pressures, investors will be keen to hear its stance on the euro zone economy.
Further upside is expected to be limited as the pair finds strong resistance at 110.03 should limit upside and bring decline towards lower levels in the short term.
To the upside, immediate resistance can be seen at 109.65, a break above this level would take the pair towards next resistance level at 110.03.
To the downside immediate support can be seen at 109.28, a break below this level will open the door towards next level at 109.00.
