USD/JPY analysis: bearing well with disappointing Fed Minutes

Valeria Bednarik FXStreet

USD/JPY Current price: 107.42

FOMC's Meeting Minutes more dovish than expected.
Yields barely retreat, while stocks jumped higher, keeping the USD/JPY near its daily highs.

The USD/JPY pair extended its advance up to 107.89 early Wednesday, spending the rest of the day consolidating not far below it ahead of the release of FOMC Minutes. US Treasury yields saw little life ahead of the event, as the 10-year note yield in the US hovered around 2.90% for most of the day. The Japanese Nikkei Manufacturing index came below expected for February, according to preliminary estimates, down to 54.0 from a previous 54.8. There are no relevant news scheduled in Japan for this Thursday. Following the release of the latest FOMC's Meeting Minutes, the pair eased toward its daily lows, holding anyway well above the 107.00 figure, as yields barely retreated with the news, while stocks got a boost. Technically, the 4 hours chart for the pair shows that the 100 SMA maintains its bearish slope above the current level, while technical indicators retreat from overbought readings, yet at the same time that the pair is holding above the 50% retracement of its latest daily slump at 107.20, now the immediate support.

Support levels: 107.20 106.60 106.15

Resistance levels: 107.90 108.20 108.70

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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