USD/JPY bulls making a stand on the 110 handle

USD/JPY is making a slight recovery in the Tokyo opening hour, up to challenge the 100 sma on the 15min time frame in a continuation of early Asia's bid. 

USD/JPY has otherwise been under immense pressure this month, with risk aversion favouring the Yen for its safe haven status. The fundamentals are somewhat skewed, however, while poor data in Japan is fuelling the downside in equities and resulting in the Yen to strengthen, while, at the same time, BOJ's Governor Kuroda was speaking in a parliament committee and saying that he is willing to cut rates further, yet there has not been a considerable reaction to that in the price.

Meanwhile, for the day ahead, the calendar is otherwise low key while we await the FOMC minutes from the Mar 15-16 meeting that will be released in the U.S. shift. "This will give us more detail on the debate of domestic and global risks. However, the market view on the Fed should remain mostly shaped by Chair Yellen's speech last week," explained analysts at Westpac.

USD/JPY levels

With the price testing the 100 sma on the 15 min sticks, but losing momentum, turning to the 1 hours chart the price is through the 20 sma and starting to erode the descending channel's resistance. A break here towards the 111.00 handle could alleviate the immediate downside pressures. However, on the 4hr sticks, the technical indicators keep heading lower, as noted by Valeria Bednarik, chief analyst at FXStreet, despite being in extreme oversold territory, in line with a continued decline for this Wednesday.