USDJPY PAIR BACK TESTING THE 107.00 LEVEL
The U.S dollar has reversed Tuesday’s strong trading gains against the Japanese yen currency, following weaker than expected Chinese and Japanese Manufacturing data. The USDJPY pair initially spiked towards the 107.60 level, following dovish comments from the new Fed Chair Jerome Powell. However, price-action has recently fallen back to test towards the 107.00 support level, with traders now focused on key U.S GDP, Inflation and Housing data.
The USDJPY pair is likely to turn bearish below the 107.00 level, with key technical support located at the 106.60 and 106.18 levels.
If price-action on the USDJPY pair manages to hold the 107.00 level, technical traders may look to test the 107.30 and 107.60 resistance levels.