USD/JPY rises above 109 on USD recovery

The USD/JPY pair is testing the 109 handle for the second time today as the greenback gains some recovery momentum at the early American session. At the moment, the pair is trading at 109.03, up 0.55% on the day.

The US Dollar Index is trying to recover yesterday's heavy losses on Wednesday. As of writing, the index was moving around its daily high of 99.65, recording a 0.25% gain. Despite today's recovery attempt, it might not be easy for the pair to continue to rise as today's upsurge hasn't been supported by a macro data nor a fundamental development. The uneasy geopolitical scene of late stayed quiet on Wednesday as well, allowing the risk appetite to creep back into the markets. 

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Later in the NA session, Fed's Beige Book and remarks from Boston Fed's Rosengren could bring some volatility. However, as long as the price action remains technical, we shouldn't see any sharp fluctuations.

Technical outlook

The pair could face the first resistance at 109.76 (200-DMA) ahead of 110 (psychological level) and 110.80 (Mar. 27 high). To the downside, supports are aligned at 108.40 (daily low), 108.10 (Apr. 17 low) and 107.75 (Nov. 15 low).

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