USD/JPY slides to fresh session lows near 112.25 level

Haresh Menghani FXStreet

The USD/JPY pair came under some fresh selling pressure and failed to build on overnight rebound from closer to 2-week lows.

The pair was being weighed down by sagging US Dollar as investors digested overnight release of the minutes of the FOMC latest policy meeting on Sept. 19-20. Despite concerns over stubbornly low inflation, the minutes left doors open for a December rate hike action but had nothing of great importance to provide any immediate respite for the greenback.

Meanwhile, the prevalent risk-on environment, which tends to dent the Japanese Yen's safe-haven demand, seems to have been largely negated by sliding US Treasury bond yields and did little to stall the pair's slide to the 112.30-25 region, or fresh session lows.

On the economic data front, Japanese PPI rose 0.2% m-o-m in September, bank credit growth increased 3.0% y-o-y and supported the bid surrounding the domestic currency.

Later during the NA session, the release of PPI figures and weekly jobless claims from the US would now be looked upon for some trading impetus ahead of Fedspeaks at a panel discussion in Washington DC.

• Forex Today: USD weakness extends into Asia, Eyes on US PPI

Technical levels to watch

Bears would be eyeing for a break below the 112.00 handle, below which the pair is likely to head towards testing the very important 200-day SMA support near the 111.85-80 region.

On the upside, 112.50-55 area now seems to have emerged as immediate hurdle, which if conquered could assist the pair to make a fresh attempt to surpass the 113.00 handle and test 113.25-30 supply zone.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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