USD/JPY consolidates post-Fed minutes slide around 110.50

Having stalled its overnight sell-off just ahead of Tuesday’s low in early Asia, the USD/JPY is seen on a minor-recovery mode in tandem with the US dollar, as dust settles over the FOMC minutes aftermath.

The greenback was solid-off across the board after treasury yields tumbled on the release of FOMC minutes late-Wednesday, with markets unwilling to buy into the Fed’s assets run-off this year, as discussed by the FOMC committee during the March meeting.

Currently, persisting risk-off trades underpin the safe-haven demand for the yen, collaborating to the downside in the spot. Markets turn cautious and resort to protect their capital in safety bets such as the yen, gold etc., as focus shifts towards the much-awaited Trump-Xi meeting scheduled later today.

USD/JPY Technical levels to watch             

The major finds immediate resistance at 110.82/111.03 (5 & 10-DMA). A break above the last, the major could test 111.50/53 (psychological levels/ 20-DMA) and 111.85 (classic R2/ Fib R3) beyond the last. While to the downside, the immediate support is seen at 110.24 (4-day low) next at 110/109.93 (zero figure/Fib S3) and below that at 109.63 (200-DMA).