USD/JPY fails to build on tepid recovery move, retreats back to mid-109.00s
The USD/JPY pair failed to build on its tepid recovery move and retreated back to mid-109.00s during early NA session.
Spot ran through fresh offers near the 109.75 region amid persistent geopolitical tensions in the Korean Peninsula and an unexpected US strike on a Syrian airbase. The prevalent cautious mood is reinforced by a fresh leg of downslide in the US treasury bond yields, which failed to lend any additional support to the US Dollar's attempted recovery move.
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On the economic data front, the release of import / export price index from the US went unnoticed, with broader market risk sentiment being an exclusive driver of the pair's near-term momentum.
Focus now shifts to Thursday's Chinese trade balance data, which might influence investors risk appetite and derive the Japanese Yen's safe-haven demand.
Technical levels to watch
Immediate support is pegged near 109.20 level, which if broken is likely to accelerate the slide further below the 109.00 handle and turn the pair vulnerable to extend its near-term depreciating move towards the very important 200-day SMA support near 108.55 region.
On the upside, any recovery attempts beyond 109.75 level (session top) is likely to confront strong resistance near the 110.00 psychological mark, which if conquered might trigger a short-covering rally towards 110.25 intermediate resistance ahead of mid-110.00s.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
