USD/JPY: 20 1hr sma supporting at 108.96

USD/JPY has been good two-way business with risk sentiment supporting the bid after bears took control in European trade.

In the US, the pair managed to recover from the lows of 108.67 and had a score on the 109 handle, but that was short-lived and the major was back to test the 20 sma on the hourly sticks at 108.96. There was little in from the calendar, but an array of Fed speakers offering a hawkish tone again suggesting more rate hikes to come before long. For the day ahead, we are light on events, but Korda is due to speak in the late hours of Asian trade before the remaining Fed speakers and US data, including retail sales.

USD/JPY levels

For the technical picture, 109.50 and 110.20 are the last key defences before the key resistances at 110.81/111.90. "To see any real upside scope emerge we need recovery through this secondary level," explained analysts at Commerzbank. "Currently we have some divergence on the intraday charts and would allow for a small dip lower ahead of further upside attempts." to the downside, a break of the 100 sma on the 1hr sticks, located at 108.53 opens the recent ow of 108.21 and then the 200 sma on the hourly looks compelling at 107.64.