USD/JPY ignored uptick in US import price index

By FXStreet Bid tone around USD failed to strengthen despite rise in the US import price index, leaving USD/JPY largely unaffected around 108.30.

Corrective move stalled near 5-DMA

Corrective rally that gathered pace following a break above hourly 50-MA hurdle earlier today appears to have run out of steam as prices neared 5-DMA level of 108.44 levels. Moreover, the momentum failed to pick up pace even though data released in the US showed import price index turned positive for the first time since June 2015.

Slightly hawkish comments from Fed’s Kaplan were ignored as well. Technical traders would be interested to see if the spot manages to sustain above hourly 50-MA. Comments from Fed’s Harker would be watched out as well.

USD/JPY Technical Levels

The immediate hurdle is noted at 108.44 (Apr 11 high + 5-DMA), above which prices could target 108.53 (hourly 100-MA). A violation there would expose 109.00 levels. On the other hand, a break below 108.12 (hourly 50-MA) would shift risk in favor of a drop to 107.66 (last week’s low). Next major support is seen at 106.65 (38.2% of 2011 low – 2015 high).
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Source:: FX Street