USDJPY TRADING RANGE EXTENDS 108.81 TO 109.86
Risk sensitive USDJPY fell sharply to a new month price low of 108.81 yesterday, only to then bounce back towards 109.86 as Janet Yellen delivered a hawkish speech at the FOMC press conference.
The pair now trades around the 109.50 level, retaining a negative bias ahead of tomorrow's Bank of Japan meeting, having given back intraday gains on the news that President Donald Trump is to be investigated for possible obstruction of justice.
The recent swing low at 109.30 now becomes critical support for the USDJPY pair, with the weekly 50 period moving average and former monthly low at 109.11 converging to provide further intraday support.
To the upside, a break above the 110.34 area negates the current bearish outlook surrounding the pair, with 109.97, the H1 200 period moving average becoming the foremost resistance before 110.34.