USD/JPY back on the offers, testing 110.50
|Having stalled its recovery from four-month troughs, the USD/JPY pair is now seen meandering near session lows, as markets digest the latest Trump headlines, citing that the Trump administration is aiming to club tax and infrastructure reforms, in an effort to speed up policy reforms to garner support after the Healthcare debacle.
Despite, risk reset, the spot failed to sustain the recovery, as sentiment remains dented by resurgence of concerns surrounding Trump’s presidency and his ability to make good the campaign promises.
Moreover, the US dollar also came under renewed pressure and stalled its corrective rally against its major rivals, in reaction to a cautious tone seen in Dallas Fed President Kaplan’s speech, delivered earlier on the day.
Markets now await a fresh batch of US economic releases, including the goods trade balance and CB consumer confidence, and Fedspeaks due later in the NA session for fresh impetus on the buck.
USD/JPY Technical levels to watch
The major finds immediate resistance at 110.82/83 (5-DMA/ daily high). A break above the last, the major could test 111/111.25 (round figure/ classic R1) and 111.49/50 (10-DMA/ psychological levels) beyond the last. While to the downside, the immediate support is seen at 110.05/00 (classic S1/ zero figure) next at 109.49 (classic S2/ Fib S3) and below that at 109.24 (200-DMA).
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