USD/JPY returns to 112 comfort zone after failed attempt to break lower

USD/JPY slips in the Asian session.
BoJ's Maeda says Bank is ready to act if further easing is needed.
US Dollar Index posts modest gains ahead of the U.S. data.

Eren Sengezer FXStreet

The USD/JPY came under a sudden bearish pressure in the Asian session and lost 30 pips in less than an hour to touch its lowest level in 10 days at 111.65 before retracing its drop. As of writing, the pair was trading virtually unchanged on the day at 111.92.

Earlier today, while speaking before the parliament in Tokyo, the Bank of Japan's Executive Director Maeda reiterated that the bank was ready to act if further monetary easing was needed and if the momentum for hitting the price target was threatened. Additionally, Japanese Finance Minister Aso called the BoJ's fight against the deflation a mistake, putting additional weight on the currency's shoulders by reviving speculations that the bank had run out of stimulus options and could resort to unconventional easing measures.

Moreover, the risk-off flows that were triggered by the U.S. deciding not to renew sanction exemptions for countries exporting oil from Iran and the Iranian parliament approving a bill to label the U.S. army as 'terrorist' helped the JPY find demand as a safe-haven.

Nevertheless, with the greenback gathering strength in the European session, the pair didn't have a difficult time recovering its daily losses. Ahead of the new home sales and Housing Price Index data from the U.S., the DXY is up 0.12% on the day at 97.40, looking to extend its rally to 2019 high of 97.71 that was set in early March.

Technical levels to watch for

USD/JPY

Overview
Today last price	111.89
Today Daily Change	-0.05
Today Daily Change %	-0.04
Today daily open	111.94

Trends
Daily SMA20	111.47
Daily SMA50	111.21
Daily SMA100	110.78
Daily SMA200	111.51

Levels
Previous Daily High	111.99
Previous Daily Low	111.85
Previous Weekly High	112.17
Previous Weekly Low	111.76
Previous Monthly High	112.14
Previous Monthly Low	109.71
Daily Fibonacci 38.2%	111.94
Daily Fibonacci 61.8%	111.91
Daily Pivot Point S1	111.86
Daily Pivot Point S2	111.79
Daily Pivot Point S3	111.73
Daily Pivot Point R1	112
Daily Pivot Point R2	112.06
Daily Pivot Point R3	112.14

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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