2 May 2016
USD/JPY recovers a bit, 107.00 level eyed for further recovery
On Monday, the USD/JPY pair has managed to register some minor recovery from 106.00 vicinity to currently trade near 106.55 level.
Following BoJ's decision to stand pat, the pair got slumped over 5% in just two trading sessions, touching its lowest level since Oct. 2014. The pair also failed to find support from a report that showed US inflation as measured by the PCE index, the Fed's preferred inflation barometer, continues to hover below the Fed's 2% target range. On Monday, traders will now take further cues from the US ISM manufacturing PMI data, scheduled for release during the US session.
Technical levels to watch
Further recovery beyond 107.00 handle might now confront immediate resistance near 107.65-70 area, which if conquered opens room for additional recovery in the near-term.
Alternatively, resumption of the pair's weakening trend and a subsequent drop below 106.00 mark has the potential to continue dragging the pair in the near-term, towards its next major support near 105.00 region.
Following BoJ's decision to stand pat, the pair got slumped over 5% in just two trading sessions, touching its lowest level since Oct. 2014. The pair also failed to find support from a report that showed US inflation as measured by the PCE index, the Fed's preferred inflation barometer, continues to hover below the Fed's 2% target range. On Monday, traders will now take further cues from the US ISM manufacturing PMI data, scheduled for release during the US session.
Technical levels to watch
Further recovery beyond 107.00 handle might now confront immediate resistance near 107.65-70 area, which if conquered opens room for additional recovery in the near-term.
Alternatively, resumption of the pair's weakening trend and a subsequent drop below 106.00 mark has the potential to continue dragging the pair in the near-term, towards its next major support near 105.00 region.