USDJPY RETREATS BACK TOWARDS THE 111 PIVOT

The USDJPY pair has retreated back towards the 111 level, after briefly moving to an intraday trading high of 111.20 in the European session.

The pair is now awaiting a key speech from FOMC vice-chairman William Dudley, with traders also looking to any new development surrounding the Brexit negotiations, which may influence demand for traditional safe-haven assets such as the Japanese yen, and provide some much-needed volatility in the USDJPY pair.

In the short-term, the USDJPY pair remains bearish whilst trading below the 111 to 110.96 area, with the pair losing momentum and in danger of moving towards the 110.50 support zone in the U.S session.

Below 110.50, the pair finds further support from the H4 time frame 50 period moving average at 110.25.

To the upside, a break above the current daily high at 111.20 exposes a further upside towards the 111.40 level. Above 111.40, intraday resistance is found at the daily time frame 100 period moving average, at 111.60.