USD / JPY tests next key support as dollar remains weak

USD / JPY Reaches 50.0 Retracement Level of Recent Upward Swing Movement in March

USD / JPY D1 29-04
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This level stands at 106.45 and will be a key daily support to watch for a potential downturn to next 105.00 in the pair. This decline comes as the dollar continues to weaken in all areas of European morning trade.

Despite some recovery in the dollar last night, the fact that the USD / JPY did not recover 107.00 continues to give sellers the advantage from a technical point of view.

And so far, sellers continue to maintain momentum in trading today.

The mood for stocks is still more or less the same, with European stocks holding slight gains with US futures contracts up about 0.7% currently. Meanwhile, the bond market is telling a different story with 10-year US yields down about 2 basis points to 0.593%.

For now, daily support at 106.45 will be essential for the USD / JPY sentiment. A firm descent below which would not see much to prevent a return to around 105.00 potentially.

The risk for sellers is that buyers will start to move above 107.00.

Going forward, the Fed will be the main risk event to watch for today, so let’s see if there will be more market clarity once it’s finished.


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