USD/JPY looking to capture and hold 107.00 ahead of Tokyo
USD/JPY has begun the overnight session under pressure while trying to reclaim the 107.00 handle.
The pair plunged yesterday following talking points from Bank of Japan (BOJ) Governor Kuroda, who stated that Japan's central bank is far off from tapering their asset purchasing programs until the Japanese economy achieves their lofty 2% growth target. Markets responded by promptly buying up the Yen, despite Kuroda's warnings that a strong Yen undermines Japan's growth potential.
The Yen buy-up prompted a quick round of risk aversion, sending the US Dollar lower in early Monday trading, but markets recovered through London and New York, and the USD/JPY pair now finds itself where it began the week, trying to clamber over and hold the 107.00 major handle.
Japan will see Retail Trade figures later Tuesday at 23:50 GMT, and market forecasts are anticipating a contraction in numbers. Before Retail data, markets will be watching Fed chairman Jerome Powell's congressional testimony for pointers about where the Fed is heading. Chairman Powell is slated to begin testifying at 15:00.
A series of indecision candles plagues trend traders on Daily charts, and lack of bearish momentum indicates potential to the upside; H4 candles show the pair preparing to mark in a higher low following the bounce from 105.55, and support now sits at 107.15 and 107.30, with resistance at 106.70 and 106.50