- The USD/JPY pair held on to its weaker tone through the mid-European session on Wednesday, albeit now seemed to show some resilience near the 108.00 round figure mark.
- The mentioned handle coincides with 100-hour EMA and might now act as a key pivotal point for intraday traders, below which the slide could get extended to the 107.80 area.
A follow-through selling is likely to accelerate the slide further towards mid-107.00s before the pair eventually aims back towards challenging the 107.00 round figure mark reviving demand for traditional safe-haven currencies – including the Japanese Yen.
However, mixed technical indicators on hourly and daily charts have failed to support any firm intraday directional bias, warranting some cautions before placing aggressive bets as investors continue scaling back expectations for an aggressive policy easing by the Fed.
On the upside, the 108.25-30 region (daily swing high) now seems to act as an immediate resistance, which if cleared decisively might trigger a fresh bout of a short-covering move and assist the pair to aim towards reclaiming the 109.00 round figure mark.
Further gains are likely to remain limited as investors might now start repositioning for the highly anticipated two-day FOMC monetary policy meeting on July 30-31, which should play an important role in determining the pair’s next leg of a directional move.
USD/JPY 1-hourly chart
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