USD/JPY manages to hold 111.00 handle, at least for the time being
• Investors looked past yesterday’s dovish FOMC minutes.
• Thin liquidity conditions fail to provide fresh impetus.
The USD/JPY pair stalled its overnight sell-off and managed to rebound few pips from the 111.00 handle, albeit struggled to gain any strong follow-through traction.
Investors seemed to have digested Wednesday's dovish FOMC meeting minutes, with some stability in the US Dollar providing some immediate respite for the bulls. The pair touched an intraday high level of 111.38 but lacked conviction in absence of any fresh catalysts.
Thin liquidity conditions are likely to prevail through Thursday's trading session in wake of Thanksgiving Day holiday in the US, with the pair more likely to extend its consolidative phase within a broader trading range.
Omkar Godbole, Analyst and Editor at FXStreet writes: "The spot is eyeing 110.00 levels, however, as indicated by the 4-hour charts, a minor technical rally to 112.00 could be seen before the spot resumes the sell-off."
"The falling channel floor is acting as strong support. The last 4-hour candle was doji, which indicates bearish exhaustion. The RSI shows oversold conditions a well. Thus, a corrective rally to 112.00 levels cannot be ruled out" he added.