USD/JPY falls back to 200-day MA support despite hawkish Fed

The US dollar finds no takers in Asia despite hawkish Fed rate hike.
USD/JPY risks falling below 200-day MA of 110.19.

Omkar Godbole FXStreet Contributor

The USD/JPY is on the defensive in Asia, adding credence to signs of a bearish reversal as indicated by yesterday's candle with a long upper shadow.

At press time, the pair is flirting with the 200-day MA support of 110.19.

The dollar bulls may have been demoralized by the fact that the ongoing policy tightening cycle will end sooner-than-expected as the Fed plans to accelerate the pace of rate hikes but does not see a higher neutral rate.

Also, the 10-year treasury yield failed to hold above 3 percent and added to the bearish pressure around the pair.

The spot could drop below 200-day MA in a convincing manner if the US retail sales, due at 12:30 GMT, print below estimates.

USD/JPY Technical Levels

Support: 110.19 (200-day MA), 109.94 (bullish 10-day MA), 109.66 (4H 100MA).

Resistance: 110.37 (session high), 110.85 (previous day's high), 111.40 (May 21 high).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Strongly Bearish	Neutral	Low
1H	Strongly Bearish	Neutral	High
4H	Bearish	Neutral	Shrinking
1D	Bearish	Neutral	Low
1W	Bearish	Neutral	Low
Updated Jun 14, 03:30 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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