- USD/JPY recovery attempts capped at 21-EMA at 111.36, trades 0.14% lower on the day.
- Technical indicators are slightly bearish. We see scope for downside on bearish divergence and weak momentum indicators.
- Markets await US new home sales data due later today ahead of the US Q2 GDP figures slated for release this Friday.
- Focus shall also be on the all-important trade talks between the European Union (EU) President Juncker and the US President Trump.
- While Trump called for a free trade deal with the EU late-Tuesday, EU urges for Trump to suspend tariffs in order to get a trade deal.
- Global trade war tensions continue to dent market sentiment and will likely keep downside pressure on the pair.
- Next major support lies at 110.55 (50-DMA) ahead of 110.09 (200-DMA). 21-EMA is immediate resistance. Breakout above could see minor upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -68.4943 (Neutral), while Hourly JPY Spot Index was at 121.477 (Bullish) at 1145 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
