USD/JPY: 106 handle holding up despite big risks ahead

 USD/JPY is a mixed bag in Tokyo, remaining on the 106 handle and elevated despite the uncertainties that lie ahead this and next week in the Fed and risks of a Brexit.

105.8 was supportive overnight on corrections of the recovery from 105.61 lows, but bullish attempts back on the 106 handle were capped at 106.20 thus far. The data coming from Japan has been modestly positive in the US and Japan with US retail sales paring expectations ex auto while industrial production from Japan was revised higher and positive in April well above market's expectations of a -1.3% decline. 

For today, the pair is awaiting a busy schedule ahead with the Central Banks and the Fed not expected to act, but presumed to give markets some food for thought depending on the rhetoric from the FOMC in respect to timings of a rate hike in 2016. The BoJ could also add some fireworks later in the week.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 1 hour chart, "the 100 SMA stands around 106.40, providing an immediate short term resistance, while the technical indicators have turned modestly lower within neutral territory, lacking directional momentum, but maintaining the risk towards the downside. In the 4 hours chart, the technical indicators have bounced from near oversold readings, but turned lower within bearish territory, in line with the shorter term outlook."