USD/JPY finds support near 112.20
|The greenback managed to regain some traction around the 112.20 area vs. the Japanese counterpart on Thursday, with USD/JPY now rebounding beyond 112.40.
USD/JPY rebounds on USTs
After bottoming out in the 112.20 region, spot met some dip-buyers along with a recovery in yields of the US 10-year benchmark, which gained around 2 bps since daily lows in the 2.32% neighbourhood.
USD opened the session on the defensive as market participants perceived as dovish yesterday’s FOMC minutes, where the Committee now sees drivers for low inflation as potentially non-transitory, while it gave no clues regarding the target for the balance sheet.
In the data space, Japanese tertiary industry activity index contracted 0.2% on a monthly basis. In the US calendar, initial claims and producer prices are next on tap, followed by speeches by FOMC’s permanent voter L.Brainard (mega-dovish) and J.Powell (centrist/dovish).
USD/JPY levels to consider
As of writing the pair is retreating 0.14% at 112.34 facing the immediate support at 112.08 (low Oct.12) seconded by 111.84 (200-day sma) and then 111.77 (61.8% Fibo of 114.51-107.33). On the other hand, a break above 112.63 (10-day sma) would pave the way for a test of 113.44 (high Oct.6) and finally 114.51 (high Jul.11).
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.