USDJPY needs to confirm recovery
The greenback has regained some ground since the start of the week, mostly due to yen’s significant retreat ahead of today’s US-North Korea summit. Trump has described the meeting with Kim as honest, direct and productive, but he highlighted that sanctions on North Korea will remain in effect and noted that the two leaders will probably need a second summit.
The dollar continues to trade with a timid bias ahead of the key US CPI data which may affect market expectations ahead of the two-day FOMC meeting that concludes Wednesday. The USD bulls hope that the monetary authorities will hint at a more aggressive tightening this year. Should today’s numbers surprise to the upside, the buck will get support across the board in the short term.
The USDJPY pair is trading around the 110.00 mark and needs to confirm a break above this psychological level to proceed with the ongoing recovery. The immediate resistance comes at 110.50, while the key support is around 109.00. The price is currently oscillating close to the 200-DMA marginally above 110.00.