USD/JPY wipes-out Gains in Tandem with Nikkei, 110 Eyed?
A sudden selling interest gripped the USD/JPY pair towards the late-Asian session, as the yen regained lost footing somewhat as the Japanese stocks fell back in the red.
USD/JPY: A retest of 110 inevitable
The
JPY bulls fought back control amid a sudden turnaround in the risk
conditions as the Japanese indices halted the rebound and returned in
the negative territory, triggered a renewed bout of risk-aversion across
the financial markets. At the time of writing, USD/JPY peeks into the
red and hovers around 110.30, while the Nikkei 225 loses -0.15% to trade
at 15,709.
Moreover, the modest recovery seen in the greenback
against its major peers, also loses steam over the last hour, and hence,
adds to the negative pressure around USD/JPY. Meanwhile, markets will
continue to track the broader market sentiment in the day ahead, while
the main focus remains on the FOMC minutes due out in the NY session.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 111/111.08
(5-DMA). A break above the last, the major could test 111.50/53 (1h
100-SMA). While to the downside, the immediate support is seen at
110/109.95 (Apr 5 Low) and below that at 109.50 (Oct 2014 Levels).
(Market News Provided by FXstreet)