- Yen remains buoyed, as risk-off amid ongoing UK political turmoil and oil sell-off outweighs dovish BOJ minutes.
- USD/JPY is extending retreat from four-week highs for the second straight session.
- The BOJ minutes showed that inflation is expected to remain weak going forward, and that the central bank will continue with its easy money policy.
- Political uncertainty in the UK after May’s deal with the DUP faltered likely to keep traders wary.
- Upside was rejected near 100-DMA at 111.84 on Tuesday's trade.
- Immediate support lies at 50-DMA at 111.10. Break below to see weakness upto 110.65 (200-DMA).
- Focus on US existing home sales data and US crude stockpiles data for fresh impetus.
Support levels - 111.10(50-DMA), 111, 110.66 (converged 20 & 200-DMA)
Resistance levels - 111.82 (100-DMA), 112, 112.15 (38.2% Fib of 118.662 to 108.130 fall)
Recommendation: We prefer to wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 132.661 (Bullish), while Hourly JPY Spot Index was at 12.1882 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
