USDJPY HOLDS SUPPORT AHEAD OF KURODA SPEECH

The USDJPY pair edged lower in the European session, as technical traders probed intraday support below the key 112 level. However, USDJPY dip buyers soon helped lift the pair higher, moving the pair back towards opening price levels.

Currency traders now look to high impact housing and goods data from the United States, and any comments from Bank of Japan Governor Haruhiko Kuroda, who is speaking later today, at the Central Bank forum in Portugal.

The USDJPY pair remains strongly bullish in the short term, with USDJPY buyers remaining in control whilst the pair trades above the daily pivot point at 112.07.

In the medium term, the USDJPY retains a strong bullish bias whilst trading above the 111.78 level.

The USDJPY H1 time frame chart depicts a bearish double top pattern formation in place, with selling pressure building whilst the pair remains unable to close above the 200 day moving average, at 112.46.

A sustained move above the 112.46 level will negate the bearish pattern, with a continuation of the USDJPY up, move likely towards the 113.20 and 114.10 levels.