USD/JPY: Supply capping minor-recovery near 109.50

By FXStreet The USD/JPY pair makes minor-recovery attempts on 109 handle over the last few hours, although every attempt to the upside meets fresh supply just shy of 109.50 levels.

USD/JPY manages to take-out hourly 200-SMA

The dollar-yen pair is seen struggling to extend its recovery from 109.10 region beyond hourly 200-SMA as the poor sentiment around the Asian equities, particularly Japanese stocks, dents risk appetite and keeps the demand for safe-haven yen buoyed.

Moreover, markets failed to take advantage of a broadly higher greenback, with the prices facing stiff upside hurdle amid weaker oil prices and a lack of fresh fundamental drivers. At the time of writing, USD/JPY trades at 109.41, up 0.16% on the day.

Next in focus for the major remains the US housing data due later in the NY session. Meanwhile, the major will continue to track the broader market sentiment for further momentum.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 109.59/79 (50 & 5-DMA). A break above the last, the major could test 110 (round number). While to the downside, the immediate support is seen at 109.00 (round number) and below that at 108.57 (20-DMA).
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Source:: FX Street