USD JPY pair expand its recoil from yesterday s falling
8/17/2016 11:31:00 PM
USD/JPY pair expand its recoil from yesterday’s falling Fundamental Analysis A tepid USD recovery on Wednesday is seen assisting the USD/JPY pair to expand its recoil from yesterday's mid-99.00 level touched in the consequences of US economic releases on Tuesday. The pair, however, has trimmed around 40-pips from session peak and is currently trading around 100.75 level. The pair on Tuesday stayed under strong selling pressure on fading expectations of a pending Fed rate-hike action in 2016. Adding to this, US CPI data, showing prices continued flat during July, more badly the downslide. However, hawkish comments from New York Fed president William Dudley provided a temporary respite for bulls and helped the pair to recoil from post-Brexit lows touched during early NA trading session on Tuesday. On a continual recovery above 101.00 handle, a fresh bout of short-covering seems to help the pair to regain 102.00 level with intermediate persistence at 101.50-55 area. However, any additional recovery above 102.00 area might continue to face strong persistence at 102.50 region, which if conquered would disprove any near-term bearish bias and open room for continuation of the pair's near-term recovery trend. In the meantime, 100.20 level now seems to protect immediate weakness, below which the pair seems to fell back below 100.00 psychological mark and fell back to Tuesday's low support near 99.50 region before heading towards testing Brexit fluctuate lows support near 99.00 region.