USD/JPY chart - Trading View
The greenback’s bounce off 27 month low has stalled on downbeat market sentiment amid US-Iran fears, virus woes and Sino-American tussle.
USD/JPY was trading 0.05% lower on the day at 106.04 at around 05:10 GMT after closing 0.67% higher in the previous session.
FOMC minutes on Wednesday cast a less dovish tone than expected, underpinning US dollar's correction.
Also, data overnight showed U.S. housing starts surged 22.6% in July to a 1.496 million-unit pace.
Single-family starts rose 8.2%, while starts of projects with five units or more—mostly apartments—skyrocketed 56.7%.
Traders will keep eyes on the risk catalysts for fresh impetus amid lack of major economic data.
Major trend is bearish, recovery is capped at 21-EMA, scope for downside resumption. Retrace till lower BB at 104.70 likely.
