USD/JPY falls back to 200-day MA support despite hawkish Fed
|- The US dollar finds no takers in Asia despite hawkish Fed rate hike.
- USD/JPY risks falling below 200-day MA of 110.19.
The USD/JPY is on the defensive in Asia, adding credence to signs of a bearish reversal as indicated by yesterday's candle with a long upper shadow.
At press time, the pair is flirting with the 200-day MA support of 110.19.
The dollar bulls may have been demoralized by the fact that the ongoing policy tightening cycle will end sooner-than-expected as the Fed plans to accelerate the pace of rate hikes but does not see a higher neutral rate.
Also, the 10-year treasury yield failed to hold above 3 percent and added to the bearish pressure around the pair.
The spot could drop below 200-day MA in a convincing manner if the US retail sales, due at 12:30 GMT, print below estimates.
USD/JPY Technical Levels
Support: 110.19 (200-day MA), 109.94 (bullish 10-day MA), 109.66 (4H 100MA).
Resistance: 110.37 (session high), 110.85 (previous day's high), 111.40 (May 21 high).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.