- USD/JPY struggled to capitalize on its intraday positive move amid a modest USD pullback.
- Mixed US consumer inflation figures did little to impress traders or provide any impetus.
The USD/JPY retreated around 45-50 pips from intraday highs and was last seen hovering near the lower boundary of its daily trading range, around mid-108.00s.
A combination of supporting factors assisted the pair to regain some positive traction on Wednesday and reverse the previous day's modest losses. The safe-haven Japanese yen was weighed down by the underlying bullish sentiment in the financial markets. Apart from this, renewed US dollar buying interest provided a modest lift to the USD/JPY pair.
From a technical perspective, USD/JPY pair retains its bullish potential in the near-term. The pair has been steadily meeting buying interest but the RSI indicator is overbought at above 70 level . This indicates there is room for a near term corrective move .Any pullback move above 108.00 round figure mark is a clear opportunity to go long .
On the flip side ,the pair would have better chances of rallying once above 109.00 round figure mark, the immediate resistance level. This would open the path to test 5th June 2020 high at 109.85 resistance level.
