USD/JPY rangebound above 107.00; not stircken by earthquake panic yet

FXStreet (Moscow) - USD/JPY dipped below 107.00 for a fraction of a second only to recover towards 107.13. The pair is only 5 pips down on the day, though the downside bias is weak.

USD/JPY bulls need some rest

USD/JPY started the downside correction on Monday. This is a natural development from a technical point of view as the pair is deeply overbought after a strong uninterrupted rally during the previous two weeks (the pair gained more than 300 pips). Moreover, investors are adjusting their long dollar positioins amid growing anxiety ahead of FOMC meeting, and this is just another reason for USD/JPY weakening. News about Tokyo earthquake of 5.6 magnitude hit the wires this morning, but JPY seems to be indifferent so far. Anyway, as long as the pair trades above 107.00 bullish sentiments will prevail, while dip brow the area of medium demand at 106.70 might extend the downside correction towards 106.05/00.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 107.19 with support below at 107.00, 106.82 and 106.63 with resistance above at 107.38 107.57, and 107.75. Hourly Moving Averages are bullish, with the 200SMA bullish at 106.19 and the daily 20EMA bullish at 105.22. Hourly RSI is bearish at 47.