USD/JPY riding the stock markets in thin trade, faded on 111 handle
USD/JPY is currently trading at 111.07 and struggles much past the figure, meeting supply. Overnight, the Dow Jones Industrial Average rallied by more than 1,000 points, climbing by around 1,086 points, or 5%, to end near 22,878. while the S&P 500 SPX, +4.96% advanced around 117 points, or 5%, to close near 2,468. The Nasdaq Composite COMP, +5.84% rose around 361 points, or 5.8%, to finish around 6,554.
Politics in focus
The White House has denied a CNN report that Treasury Secretary Steven Mnuchin’s job was in “serious jeopardy.” The White House economic adviser Kevin Hassett was interviewed in televisions and he said that he was confident that President Donald Trump was happy with Mnuchin. The WSJ also reported that Hassett assured that the Federal Reserve Chairman Jerome Powell’s job was “100% safe.”
Valeria Bednarik, Chief Analyst at FXStreet explained that the 4 hours chart shows that, after breaking above it, the pair has held above a strong Fibonacci support at around 110.75, the 38.2% retracement of this year rally after piercing it last Monday. "Technical indicators in the mentioned chart have corrected extreme oversold readings but lost upward strength below their midlines, as the price remains far below its moving averages, suggesting the pair could resume its decline anytime. A recovery above 111.60, however, will bring some relief to speculative bulls. In the meantime, the pair is still unable to recover above its 200 DMA after breaking below it last week."
Support levels: 110.75 110.40 110.10
Resistance levels: 111.20 111.60 112.00