USD/JPY: minor recovery headed to 107.35?

• USD/JPY bulls attempting a recovery.
• USD/JPY: 107.35 is the first resistance.

USD/JPY continues the minor recovery attempt in the first hour of the Tokyo open and is currently, USD/JPY is trading at 106.29, up 0.08% on the day, having posted a daily high at 106.32 and low at 106.08.

USD/JPY loses the better bid appeal

Overnight, USD/JPY was better bid. For the European session, the bulls were hunting down a key fibo resistance on the 107 handle but failed to convince and the bears took back control at 107.20 where Japanese exporter sell orders are placed. Risk-on sentiment was fueled in the NY session by the ISM beat and inline PCE readings. The VIX read as high as 25 at one stage and then came the Trump headlines and the yen picked up the safe haven bid as stocks, yields and the dollar crashed sending USD/JPY down to 106.15.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the pair is neutral-to-bearish according to the 4 hours chart, as the intraday recovery stalled below a bearish 100 SMA, now converging with the 23.6% retracement of February's advance around 107.35, the immediate resistance, while technical indicators hover around their mid-lines with no clear directional strength.