Nikkei selling has taken its toll on the Japanese Yen crosses, with USD/JPY re-testing lows below the 111 handle at 110.85. FOMC/BOJ outcomes, due on Wednesday US hours and Thursday Asian morning respectively will be the…
Nikkei selling has taken its toll on the Japanese Yen crosses, with USD/JPY re-testing lows below the 111 handle at 110.85.
FOMC/BOJ outcomes, due on Wednesday US hours and Thursday Asian morning respectively will be the major drivers for the pair.
News that the BOJ is considering negative rates on loans has kept the Yen subdued, and should the FOMC sound not as dovish as expected, USD/JPY is likely to find a further boost.
On the day, the pair is trading a narrow range with day's high at 111.30 and lows at 110.85.
Technicals on daily charts support upside in the pair, but intra-day bias is bearish.
Supports on the downside are aligned at 110.84 (April 25th lows), 110.66 (5-DMA and March 17th lows) and 110.
Resistance on the upside aligns at 111.80 (double top April 4th and 22nd), 112 and 112.66 (cloud base).
