- USD/JPY attempts a bounce around 109.80, tracking the S&P 500 futures higher.
- DYX remains in bearish consolidation amid a rout in the Treasury yields.
- Japan PM Suga hints at a snap election, BOJ Kuroda’s speech eyed ahead of Fed minutes.
USD/JPY attempts a bounce towards 110.00 in Wednesday’s early Asian trading, having stalled its 85-pips overnight bearish correction.
At the press time, the major trades at 109.84, adding 0.10% on the day while recovering from weekly lows of 109.68.
The latest pullback in the spot could be attributed to the uptick in the S&P 500 futures, which points to an upbeat mood, especially after Wall Street indices retreated from record highs and finished Tuesday in the red.
Meanwhile, fresh comments crossing the wires from the Japanese Prime Minister Yoshihide Suga, citing that a snap election before the end of September is “a possibility”, weighs negatively on the yen.
USD/JPY tumbled a day before, thanks to the sell-off in the US dollar and the Treasury yields. The greenback accelerated its correction from five-month tops against its main competitors while a rout in the US rates exacerbated the pain in the buck.
The spot remained unfazed by stronger US job openings data and the International Monetary Fund’s (IMF) upward revision to the global growth forecasts.
Looking ahead, it remains to be seen if the major can sustain the rebound, as investors could turn cautious ahead of the FOMC meeting’s minutes release.
USD/JPY: Technical levels
“The 4-hour chart shows that it has met sellers around a now bearish 20 SMA, while technical indicators maintain their bearish slopes near oversold levels. The 100 SMA maintains its bullish slope, providing dynamic support around 109.50. Selling interest will likely increase on a break below this last. Support levels: 109.50 109.15 108.70. Resistance levels: 109.5 110.30 110.65,” FXStreet’s Chief Analyst, Valeria Bednarik, explains.
USD/JPY: Additional levels