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USD/JPY hunting for 105.50 on FOMC-led notable USD supply

3/22/2018, 11:11:27 AMMarket Analysis
USD/JPY hunting for 105.50 on FOMC-led notable USD supply

The Greenback tripped over itself against the Yen in the overnight session, dropping to 105.58 before edging back slightly to 105.70.

Risk aversion has broken back into the broader market and the USD/JPY is dropping lower following the big Aussie employment miss and the Japanese Nikkei Manufacturing PMI dropping to a five-month low of 53.2.

The US Dollar is slipping further following the FOMC's rate hike today that saw the committee leave their 'dot plot' unchanged at three rate hikes for 2018, and markets have responded by shorting the Greenback out of its recent gains.

USD/JPY Levels to watch

This drop sees the pair price in new resistance at Wednesday's low of 105.88 and the 50-hour MA at 106.20, with restistance thinning at February's low of 105.55and March's low of 105.25.