USD/JPY pivots around the 108.00 handle as sellers stay in near-term control
Price moves slightly above the 108.00 level after a brief look lower earlier
The pair continues to hold lower on the day as the dollar remains weaker following Fed chair Powell's testimony yesterday. In Asia Pacific trading, sellers regained near-term control after driving price below the 200-hour MA (blue line) before testing levels just under the 108.00 handle earlier today.
Price tested the 50.0 retracement level @ 107.88 before bouncing up a little to hold just above the 108.00 handle again now on the session. The yen is leading gains among the major currencies space, helped by lower yields but movement against the rest of the bloc remains modest as every other currency is also gaining against the dollar.
For USD/JPY, the risk for sellers in the coming sessions is if price moves back above the key hourly moving averages. The 200-hour MA @ 108.28 will be the first spot to watch before light offers are seen closer to 108.50 alongside the 100-hour MA (red line) @ 108.57.
As for key risk events today, we'll have another round of Powell (though he is likely to deliver somewhat similar remarks) as well as US CPI data for June to come later on in the day. Let's see if any of those events have the potential to change sentiment.
Otherwise, with dollar sentiment so closely tied to the Fed outlook currently, the bond market will offer traders with where USD/JPY is headed moving forward:
Reprinted from Forexlive，the copyright all reserved by the original author.
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