The USD/JPY pair recovered some ground and trades near a daily high at 108.54, with the dollar taking a breath after yesterday’s slump, although retaining its intrinsic weakness. Now, dollar/yen needs to pierce 108.00 to continue its slide, Valeria Bednarik, Chief Analyst at FXStreet, reports.
Dollar’s sell-off on pause
“The change in the market’s mood seems related to the earnings season, as big names will soon start reporting, spurring profit-taking. Also, speculative interest turned cautious ahead of a fresher catalyst. Meanwhile, Japan published the February Tertiary Industry Index, which resulted at 0.3% MoM, better than the previous -1.7%.”
“USD/JPY retains its near-term bearish stance, despite the intraday advance. The pair needs to break below the 108.00 figure to resume its decline, while the corrective advance may extend on a clear break above the mentioned 20 SMA, currently around 108.55.”