Amid a pick-up in buying interest seen in Treasury yields and positive Asian equities, the USD/JPY pair continues to find support on 112 handle.
USD/JPY re-attempts gains above 10-DMA at 112.28
The major is seen wavering back and forth in a 15-pips narrowing, closely tracking the USD price-action amid a lack of fresh fundamental catalysts, while investors gear up for a fresh round of US economic releases due later on Wednesday for fresh impetus on the buck.
Meanwhile, positive tone seen on the Asian equities combined with higher commodities’ prices, continue to keep a lid on further upside in the safe-haven Yen against its American counterpart.
Also, hawkish comments from the Fed member Harker as well as Trump’s remarks on the tax reforms stalled the greenback’s corrective slide, in turn aiding a minor recovery in USD/JPY pair from 112.13 lows. At the time of writing, the spot is seen trading at 112.25, up +0.03% on the day.
Looking ahead, the range-trade is expected to continue in USD/JPY, so long as it holds above 112 handle, as pre-caution trading ahead of Sunday’s Japanese election is likely to drive the sentiment around the Yen markets.
USD/JPY Technical View
Jim Langlands at FX Charts lays out the preferred strategy: “US$Jpy has had a tight 40 point range and further consolidation in the 112.00/113.00 may be in store. The hourly indicators look a little heavy but the 4 hour charts look positive and if the session high at 112.47 can be taken out, then 112.75 would be the first real hurdle ahead of 113.00 and 113.43 (6 Oct high). On the downside, back below 112.00, good support now seen at 111.60/70, and buying dips is preferred today. Further out, the dailies look less positive, so further range trade between 111.60/113.00 may be in store for the next few days.”
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