USD/JPY turns negative near 110.10

The upside momentum in the greenback is now deflating a tad, with USD/JPY retreating marginally to the 110.15/10 band.

USD/JPY in 3-week tops

Spot seems to have found a tough resistance in the 110.40 area today, although it manages well to keep the trade in the area of 3-week highs above the 110.00 handle for the time being.

The hawkish tone seen in yesterday’s FOMC minutes has given extra wings to the ongoing USD rally, lifting the pair above the 110.00 mark for the first time since late April as the Committee has left the door open for a rate hike by the Fed at its meeting in June. 

USD/JPY levels to watch

As of writing the pair is losing 0.11% at 110.09 facing the immediate resistance at 110.38 (high May 19) followed by 110.44 (55-day sma) and finally 111.92 (high Apr.28). On the flip side, a breach of 108.84 (20-day sma) would aim for 105.52 (2016 low May 3) and then 105.18 (monthly low Oct.2014).