USD/JPY turns negative, eyes 109.00 handle

Having failed to cut through 10-DMA level of 109.42 levels, the USD/JPY turned negative in Europe and is now eyeing 109.00 levels.

Trades below hourly 200-MA

The spot currently trades just below hourly 200-MA located at 109.28 levels. Yen’s two day losing streak came after sharp rally last week and ran out of steam earlier today at 109.55 levels. Moreover, the losing streak was largely a corrective move and the current strength is again not taking into consideration the risk-on in the equity markets.

Ahead in the day, US consumer price index and weekly jobless claims release in the US is likely to influence the pair. The pair currently trades around 109.18 levels.

USD/JPY Technical Levels

The immediate support is seen at 109.00, under which the pair could target 5-DMA stationed at 108.61. A break lower would expose 107.63 (last week’s low). On the other hand, a break above 109.42 (10-DMA) would shift risk in favor of a rise to 110.00 levels, beyond which a major resistance is seen at 110.67 (Mar 17 low).