USD/JPY rejected again at hourly 50-MA

Hourly 50-MA remains a strong resistance as corrective rally in the USD/JPY pair failed to cut through the same.

Trims gains, trades around 108.10

Having failed to take out hourly 50-MA, the spot now trades around 1.08.10 levels. Kuroda’s dovish comments failed to lit a fire under USD/JPY, plus stock market rally in Europe also failed to push the spot through hourly 50-MA hurdle.

Moreover, corrective rallies in the pair since the beginning of the current month have ended around hourly 50-MA. It remains to be seen if there is a fresh sell-off in the pair or it finally manages to take out hourly 50-MA hurdle currently seen at 108.31.

Markets now await speech from Fed’s William Dudley. Traders would also keep an eye on news flow from Yellen’s meeting with President Obama.

USD/JPY Technical Levels

The immediate hurdle is noted at 108.31 (hourly 50-MA), above which the spot could target 109.00-109.07 (hourly 100-MA). On the other hand, a break below 107.63 (daily low) would shift risk in favor of a drop to 107.00. A violation there would expose 106.64 (38.2% of 2011 low-2015 high).