USD/JPY refreshes session tops near 111.35 level
The USD/JPY pair caught some fresh bids at lower level and gained nearly 50-pips from session lows near the 110.85 region.
Currently trading around 111.25-30 region, testing session tops, the pair now looks to move past Monday's swing high amid improving investors' risk appetite, which was seen denting the Japanese Yen's safe-haven demand.
Adding to this, a modest pickup in the US Treasury bond yields, helping the key US Dollar Index to bounce off fresh 13-month lows, further collaborated to the pair's recovery move back beyond the 111.00 handle.
The pair's gained a follow through traction after the BOJ's newly appointed board members Hitoshi Suzuki and Goshi Kataoka refuse to comment on the need for more easing nor commented on the period of the current easing framework.
• BOJ’s Suzuki: No comment on how long the current easing framework can last
It, however, remains to be seen if the pair is able to build on the up-move to reclaim the important moving averages (50, 100 & 200-day SMAs) confluence support break area, now turned resistance near 111.65-75 region amid prevalent bearish sentiment around the buck.
Later during the NA session, the release of CB Consumer Confidence Index would now be looked upon for some fresh trading impetus. However, the near-term trend would remain dependent on the outcome of FOMC decision, due to be announced during the NY trading session on Wednesday.
• FX markets guided by central banks at the moment - HSBC
Technical levels to watch
A follow through momentum might continue to confront resistance near 111.65-75 region, above which the pair is likely to aim towards reclaiming the 112.00 handle before darting towards its next hurdle near 112.35-40 area.
On the downside, the 111.00 handle now becomes an immediate support to defend, which if broken would turn the pair vulnerable to break below one-month lows support near 110.60 level and head towards testing 110.25 horizontal support en-route the key 110.00 psychological mark.