USD/JPY hangs near two-month lows, just above 111.00 handle
• Weaker USD fails to help register any meaningful bounce.
• Bears seemed reluctant amid thin liquidity conditions.
The USD/JPY pair extended its consolidative price action and remained confined within a narrow trading range near two-month lows.
A dovish assessment of the latest FOMC meeting minutes, revealing policymakers' concern over persistently low inflationary pressure, continued exerting some downward pressure on the US Dollar through the mid-European session on Thursday.
Investors, however, seemed reluctant to add to their bearish positions and preferred to stay on the sideline amid illiquid trading conditions, which has eventually led to a subdued/range-bound trading action around the major.
With the US markets closed in observance of Thanksgiving holiday, trading volumes are expected to remain thin. Hence, the pair seems more likely to extend its sideways move ahead of the release of Japanese flash manufacturing PMI during the early Asian session on Friday.
Technical levels to watch
Immediate resistance is now seen near the 111.35-40 region, which if cleared could help the pair to surpass 111.65-70 hurdle and aim towards reclaiming the 112.00 handle.
On the flip side, bears would be eyeing for a decisive break through the 111.00 handle, below which the pair is likely to accelerate the slide towards 110.70-65 horizontal support.