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.

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).

15M Strongly Bearish Neutral Low
1H Strongly Bearish Neutral High
4H Bearish Neutral Shrinking
1D Bearish Neutral Low
1W Bearish Neutral Low




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