USD/JPY trims loss in tandem with Nikkei
|Fresh bids emerged for the USD/JPY pair near 5-DMA in the Asian, now allowing a minor bounce back above 104.50 levels on improved risk conditions.
USD/JPY re-takes 105?
The dollar-yen pair attempts a tepid bounce as we progress into the early European trading, mainly on the back of recovering Japanese stock markets amid higher oil and easing Brexit fears. At the time of writing, USD/JPY drops -0.22% to 104.54, while the Nikkei 225 index now recovers to 16,100 points, down -0.40% on the day.
However, the recovery looks fragile in wake of a broadly weaker US dollar as Yellen’s cautious stance continues to weigh on the US currency. Meanwhile, markets now await the US existing home sales data and Yellen's 2nd round of testimony due later today amid looming Brexit vote.
USD/JPY Technical levels to watch
In terms of technicals , the immediate resistance is located at 104.84 (Jun 17 high). A break above the last, the major could test 105.05 (Jun 21 high). While to the downside, the immediate support is seen at 104 (round number) and below that at 103.56 (Multi-month low).
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.