- Demand for Yen eases as the political turmoil in Italy eased as parties push forward to try to form a government.
- Weaker US ADP report on private sector employment and a downward revision of the Q1 GDP growth figures exerted some downward pressure on the already weaker US Dollar.
- Markets now await fresh impulse from core PCE inflation later on Thursday ahead of the US non-farm payroll report on Friday.
- USD/JPY recovered from new 4-week lows at 108.11, is currently trading at 108.89.
- Upside remains capped below 5-DMA at 109.06, break above could see further upside.
- Technically, the pair trades with a major bearish bias, scope for further downside.
- Currently we see strong support at 100-DMA at 108.14, break below to see further weakness.
Support levels - 108.35 (50-DMA), 108.14 (100-DMA), 108, 107.65 (Apr 23 low)
Resistance levels - 109.06 (5-DMA), 109.80 (23.6% Fib), 110
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -90.3025 (Bearish), while Hourly JPY Spot Index was at -9.61339 (Neutral) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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