USD/JPY bounces off daily lows

FXStreet (Córdoba) - The dollar weakened broadly on Wednesday and retreated from a near 3-week high scored yesterday versus the yen after the BoJ decided to maintain monetary policy unchanged and as investors gear up for the Fed minutes release.

USD/JPY dropped more than 80 pips from a high of 120.44 and hit a daily low of 119.63 at the beginning of the New York session, before finding support at the 200-hour SMA and recovering a tad. At time of writing, the pair is trading at 119.90, still down 0.30% on the day.

Attention turns now to the FOMC meeting minutes although experts believe the they are unlikely to provide surprises. In the light of US economic data over the last weeks and the fact the eventual "lift-off" remains data dependent, discussions last month might have become outdated.

USD/JPY levels to watch

In terms of technical levels, USD/JPY could find immediate supports at 119.63 (daily low), 119.42 (Apr 7 low) and 119.11 (100-day SMA). On the other hand, resistances could be found at 120.35 (daily high), 120.44 (Apr 7 high) and 120.60 (61.8% Fibo of 122.02-118.32).

USD/CHF holds above 0.9600, trims losses

USD/CHF recently reached 0.9644, erasing most of the losses as the US dollar climbed across the board, after Wall Street opening bell and following comments from William Dudley, president of the New York Federal Reserve Bank. He considers reasonable to expect a rate increase this year.
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