USD/JPY: Poised for extra consolidation

FX

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USD/JPY keeps the consolidative mood unchanged for yet another session on Wednesday, always within the 103.70-104.80 range and against the backdrop of alternating risk appetite trends and the generalized bearish view on the dollar. Further rangebound is likely in the near-term, FXStreet’s Pablo Piovano briefs.

Key quotes

“The combination of the weaker greenback with the improvement in the risk complex – which in turn favours JPY selling, lend support to the near-term neutral stance of USD/JPY.”

“In the meantime, the safe-haven JPY is expected to closely follow upcoming events from the ECB meeting and the EU Summit as potential sources for near-term bouts of volatility and/or risk aversion, as well as developments from the US political scenario and the Brexit negotiations.”

“A surpass of the 104.80 area – which is reinforced by the 55-day SMA – could lead to a minor hurdle at the 100-day SMA, today at 105.23, ahead of the November’s peak at 105.67 (November 11). On the downside, a breach of the 103.70/65 band carries the potential to spark a visit to the November’s low near 103.15.”

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