Selling interest in the Dollar-Yen pair appears to have run out of steam near September high of 104.32 levels. The pair is now trading around 104.40 levels.
Focus on US data
Dollar-Yen pair clocked a high of 104.70 in early Asia before retreating to a low of 104.30 before recovering slightly to 104.40 levels. The bid tone around Yen strengthened after BOJ's Kuroda played down the need to do more easing in the short-term.
The focus now is on US durable goods orders release, which is expected to show corporate spending remained anaemic in September. Note that the markets are expecting Friday's US Q3 GDP release to show the economy expanded at a fastest rate in almost two years following the release of an upbeat trade deficit figure on Wednesday. Also worth noting is the fact that the bar of expectations with regards to durable goods orders has been set low.
USD/JPY Technical Levels
Acceptance below 104.32 (September high) on 1-hr/4-hr chart would open doors for a retreat to 104.00 (zero figure). In terms of technical patterns, we had a gravestone Doji formation on the daily chart on Tuesday. A break below 104.00 would add credence to the reversal pattern, and lead to a sell-off to 103.17 (Oct 19 low).
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