USD/JPY in recovery mode circa 108.50

By FXStreet USD/JPY has managed to recover off day lows, currently consolidating circa 108.50 mid round number, assisted by the Nikkei 225, which has paired its early losses and is currently trading down by only 0.4% around 16,500.

Awaiting US data

The pair will be, once again, driven most by sentiment today, which took a turn for the worse during US hours on Wednesday. Looking at the calendar, US unemployment claims will be the standalone data point to inject some short term volatility. On Friday though, the US calendar is packed with key events, including US retail sales, PPI and UoM consumer sentiment, providing further clarity over the state of the US economy.

USD/JPY technicals

Technically, short term, Valeria Bednarik, Chief Analyst at FXStreet, ntes: “The 1 hour chart shows the price holds above a bullish 20 SMA, currently around 108.05, but that the technical indicators head south within negative territory, supporting a continued decline. In the 4 hours chart, the price faltered around its 200 SMA and has now broken below the 100 SMA, currently around 108.60, whilst the technical indicators turned sharply lower from near overbought levels and are ready to enter negative territory, also in line with a bearish continuation.”
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Source:: FX Street