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26 Apr 2016
USD/JPY: Struggles to extend recovery above 111
The bearish tone around the USD/JPY pair appears to fade a bit in late-Asia, with the major attempting a minor-recovery in sync with the Japanese equities.
USD/JPY holds above 110.81 daily S1
The dollar-yen pair trims losses and recovers some ground as the yen eases from session highs after risk conditions improved slightly on the back of a minor pullback seen in the Japanese indices. At the time of writing, USD/JPY hovers around 111, still down -0.20% on the day, while the Nikkei 225 index drops -0.60% to 17,329, moving off-lows reached at 17,200 levels.
Meanwhile, the major will continue to take the lead from sentiment on the global equities ahead of the US durable goods orders data due for release in the NY session. Total durable goods orders are projected to rebound 1.9% in March versus -3.0% seen last.
Looking ahead, the USD/JPY pair is expected to maintain a neutral bias as both the Fed and BOJ are expected to announce their monetary policy decisions this week.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 111.73/88 (50-DMA/ 2-week tops). A break above the last, the major could test 112 (psychological levels). While to the downside, the immediate support is seen at 110.81 (daily S1) and below that at 110.29/09 (1h 100-SMA/ 10-DMA).
USD/JPY holds above 110.81 daily S1
The dollar-yen pair trims losses and recovers some ground as the yen eases from session highs after risk conditions improved slightly on the back of a minor pullback seen in the Japanese indices. At the time of writing, USD/JPY hovers around 111, still down -0.20% on the day, while the Nikkei 225 index drops -0.60% to 17,329, moving off-lows reached at 17,200 levels.
Meanwhile, the major will continue to take the lead from sentiment on the global equities ahead of the US durable goods orders data due for release in the NY session. Total durable goods orders are projected to rebound 1.9% in March versus -3.0% seen last.
Looking ahead, the USD/JPY pair is expected to maintain a neutral bias as both the Fed and BOJ are expected to announce their monetary policy decisions this week.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 111.73/88 (50-DMA/ 2-week tops). A break above the last, the major could test 112 (psychological levels). While to the downside, the immediate support is seen at 110.81 (daily S1) and below that at 110.29/09 (1h 100-SMA/ 10-DMA).