USD/JPY testing lows near 103.80, Fedspeak eyed

Dhwani Mehta FXStreet

USD/JPY is seen consolidating in a 20-pips narrow range over the last hours, as the JPY bulls manage to retain control amid poor risk tone prevalent in the markets.

USD/JPY hovers around 5-DMA

The recovery in the USD/JPY pair remains capped by 104 handle, despite ongoing bullish momentum in the greenback against its main rivals, as persisting risk-averse market conditions continue to underpin the safe-haven yen.

Moreover, the yen markets seem to have ignored BOJ Governor Kuroda’s latest comments, as he continues jawboning. Kuroda noted that the bank will continue implementation of ‘extremely accommodative expansionary monetary policy’.

The USD/JPY pair is seen last exchanging hands at 103.84, hovering within a striking distance of daily lows struck earlier at 103.78, down -0.11% on the day.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 104.26 (daily R1). A break above the last, the major could test 104.50 (psychological levels) and 104.63 (3-month high) beyond the last. While to the downside, the immediate support is seen at 103.85 (5-DMA) next at 103.22 (20-DMA) and below that at 103.00 (key support).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Shrinking
1H	Bearish	Neutral	Low
4H	Bearish	Neutral	High
1D	Bullish	Neutral	Low
1W	Bullish	Neutral	Low
Updated Oct 21, 08:30 GMT

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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