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  • The Dollar’s attepmpted recovery against the Yen is seeing halting progress as markets are quick to flight.
  • Wednesday brings US Durable Goods and Japan Retail Sales figures later on in the day.

The USD/JPY continues to be in play near the 110.00 handle, dropping from the day’s high of 110.20 on continued risk aversion, but recovering from a low of 109.77, and the pair is now testing the 110.00 level ahead of the European market session.

Tuesday saw a recovery for the US Dollar against the Yen, driving the Greenback up from the week’s lows near 109.35, but trade fears between the US and China that marred action at the beginning of the week is continuing to hamper risk appetite in the mid-week, and the USD/JPY is struggling to make leeway as the Dollar recovery chugs against souring market sentiment.

Later on today will see the  US  Durable Goods Orders for May at 12:30 GMT, expected to tick up slightly from -1.6% to an improved but still negative -1.0%, while the late Wednesday session will be seeing Japanese Retail Trade figures at 23:50 GMT, with the y/y figure expected to come in at 1.2%, a slight decline from the previous reading of 1.5%.

USD/JPY levels to watch

The Greenback looks to be trying to establish a floor from the current week’s low, and early Wednesday’s turnaround before the 61.8% retracement level could mark in a higher level for the pair to jump upwards from, assuming broader market sentiment doesn’t contract sharply ahead of the US’ Durable Goods Orders figures due later in today’s US session.

Spot rate:   109.94
Relative change:   -0.06%
High:   110.20
Low:   109.77
Trend:   Bullish
Support 1:   109.77 (current day low)
Support 2:   109.69 (61.8% weekly Fibo level)
Support 3:   109.37 (current week low)
Resistance 1:   110.21 (current week high; previous resistance)
Resistance 2:   110.75 (previous week high)
Resistance 3:   110.90 (June high)