USD/JPY trying to stabilize around 109.00 handle, US data next

The USD/JPY pair remained under pressure through European session on Thursday and struggled to register any meaningful recovery from five month through.

The pair's attempted recovery during early European session, led by stabilizing US treasury bond yields, ran through some fresh offers near 109.25 level and has now retreated back to the 109.00 handle. Rising geopolitical tensions continues to dent investors’ appetite for riskier assets, as depicted by weaker sentiment surrounding global equity markets, and remains supportive for the Japanese Yen's safe-haven appeal. 

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Against the backdrop of worries over the US relationship with Russia and North Korea, Wednesday's comments by the US President Donald Trump remains a key overhang and might limit any immediate sharp US Dollar recovery. 

Next on tap would be the US economic docket that includes - usual weekly jobless claims data alongside the latest PPI print for March and would be followed by the Prelim UoM Consumer Sentiment. 

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes, "the RSI is oversold and the pair is close to the 200-DMA support level of 108.57, which suggests a potential for a technical recovery to the downward sloping 1-hour 50-MA level of 109.73. On the downside, the falling channel floor - 108.30 could be put to the test following the breach of the 200-DMA."