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  • USD/JPY meets with some fresh supply amid the prevailing risk-off mood.
  • The set-up supports prospects for the emergence of some dip-buying interest.

The USD/JPY pair failed to capitalize on its intraday positive move, rather met with some fresh supply near the 111.65-70 region and has now retreated to the lower end of its daily trading range.

The Asian session swing lows, around the 111.25 region, coincides with 38.2% Fibonacci level of the 109.66-112.23 upsurge and is closely followed by 100-hour SMA, around the 111.15 area.

A convincing break through would be seen as a key trigger for bearish traders and turn the pair vulnerable to accelerate the slide towards 61.8% Fibo. level near the 110.65-60r region.

Meanwhile, technical indicators on the 1-hourly chart have been gaining negative traction, albeit have still managed to hold well within the bullish territory on 4-hourly/daily charts.

The set-up support prospects for the emergence of some dip-buying and thus warrants some caution before positioning aggressively for any further near-term corrective slide.

USD/JPY 1-hourly chart