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  • BoJ minutes, Kuroda’s comments keep the Yen undermined.        
  • But capped by 113 as US-China trades tensions limit further upside.  

The USD/JPY pair is seen consolidating the upside within a familiar range in the European session, having failed another attempt to take out the 113 handle.

The spot remains supported by broad Yen weakness after the Bank of Japan (BoJ) minutes released earlier today. The minutes revealed that a few officials are concerned about the dangers of the ongoing ultra-easy policies.  Meanwhile, the latest remarks from the BoJ Chief Kuroda also weighed negatively on the Yen.

But, the downside in the Yen appears capped amid looming US-China trade concerns, which tends to boost the safe-haven demand for the Yen. Meanwhile, the US dollar remains on the back foot across its main peers ahead of Wednesday’s FOMC decision, further restricting the upside attempts in USD/JPY.

All eyes now remain on the US CB consumer confidence data and US-China trade woes-related headlines for near-term trading opportunities. Upbeat US macro news could provide the much-needed impetus to the USD bulls that could push the rates above the 113 handle.

USD/JPY Technical Levels

FXStreet’s Analyst Omkar Godbole, noted: “The spot looks set to test 113.40 (target as per the measured height method) in a day or two, having witnessed a  bull flag breakout  on the hourly  chart. Further, a series of higher highs and higher lows, ascending 50-hour, 100-hour and 200-hour moving averages indicate the path of least resistance is on the higher side.”