USD/JPY retreats from 109.70

By FXStreet The greenback remains on a firm footing during the first half of the week, with USD/JPY now easing a tad from highs around the key 109.70 area.

USD/JPY bolstered by Fedspeak

The Japanese currency has surrendered part of its recent gains to the 109.00 neighbourhood vs. its American counterpart seen on Monday, as the sentiment around the risk-off trade seems to have dwindled somehow.

JPY remains under pressure nonetheless, ahead of the G7 meeting and recent talks regarding the likeliness of intervention by the BoJ.

USD/JPY levels to watch

As of writing the pair is up 0.36% at 109.63 facing the immediate resistance at 110.18 (55-day sma) followed by 111.92 (high Apr.28) and finally 112.69 (100-day sma). On the flip side, a breach of 108.50 (20-day sma) would aim for 105.52 (2016 low May 3) and then 105.18 (monthly low Oct.2014).
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Source:: FX Street