USD/JPY - Rejected at 1-hour 50-MA, extends losses
|The Dollar-Yen pair is extending losses, now trading around the session low of 111.12 after repeatedly failing to take out the 1-hour 50-MA in the overnight trade.
The 1-hour 50-MA continues to slope downwards and is now seen offering resistance at 111.42 levels.
Senate intelligence asks Comey to testify
The Washington post report says “Sen. Richard Burr (R-N.C.), chairman of the Senate Select Committee on Intelligence, and Sen. Mark Warner (D-Va.), the committee’s vice chairman, sought Wednesday to invite former FBI director James Comey to testify.”
Comey will also carry documents related to the investigation into Russia’s meddling in the 2016 US elections.
The Trump budget plan is unrealistic
President’s budget, due for release on Tuesday will propose deep cuts to safety-net programs
combined with a tax and regulatory overhaul that speeds up the growth. Economists believe the plan is unrealistic as it is based on the faulty assumption that “tax cuts will pay for themselves”.
The Japanese Yen is likely to remain well bid ahead ahead of Comey’s testimony, especially if the US 10-year treasury yield is held below the key technical level of 2.3%.
USD/JPY Technical Levels
The pair clocked a high of 111.60 (Feb low) before falling back to 111.20 levels. A break above 111.42 (1-hour 50-MA) would expose 112.07 (5-DMA) and 112.39 (May 8 low). On the lower side, failure to hold above 111.00 levels would open up downside towards 110.51 (61.8% Fib retracement of Apr low - May high) and 110.00 levels.
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