USD/JPY testing lows near 103.80, Fedspeak eyed

USD/JPY is seen consolidating in a 20-pips narrow range over the last hours, as the JPY bulls manage to retain control amid poor risk tone prevalent in the markets.

USD/JPY hovers around 5-DMA

The recovery in the USD/JPY pair remains capped by 104 handle, despite ongoing bullish momentum in the greenback against its main rivals, as persisting risk-averse market conditions continue to underpin the safe-haven yen.

Moreover, the yen markets seem to have ignored BOJ Governor Kuroda’s latest comments, as he continues jawboning. Kuroda noted that the bank will continue implementation of ‘extremely accommodative expansionary monetary policy’.

The USD/JPY pair is seen last exchanging hands at 103.84, hovering within a striking distance of daily lows struck earlier at 103.78, down -0.11% on the day.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 104.26 (daily R1). A break above the last, the major could test 104.50 (psychological levels) and 104.63 (3-month high) beyond the last. While to the downside, the immediate support is seen at 103.85 (5-DMA) next at 103.22 (20-DMA) and below that at 103.00 (key support).