USD/JPY retreats around 30-pips from session tops, back below mid-111.00s

The greenback weakened across the board after disappointing durable goods orders, with the USD/JPY pair once again failing ahead of 100-day SMA resistance and retreating around 30-pips from multi-day tops touched before the data.

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The pair once again met with fresh supply near 111.75 region following yet another US data disappointment, which seems to have receded expectations of additional Fed rate-hike action in 2017. Fading expectations was being reinforced by a sharp slide in the US Treasury bond yields, which was eventually seen weighing on the US Dollar and collaborated to the pair's retracement back to 111.40-45 zone.

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Meanwhile, the prevalent positive sentiment around equity markets failed to lend any additional support to the Japanese Yen's safe-haven appeal and helped the pair to hold in positive territory, at least for the time being.

With the US macro data out of the way, investors now look forward to speeches from various FOMC members, including the Fed Chair Janet Yellen on Tuesday, in order to gauge possibilities and timing of the next rate-hike move, which would help determine the next leg of directional move for the major.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes, “the technical suggests that the risk has turned towards the downside, as in the 4 hours chart, technical indicators head now sharply lower around their mid-lines , whist the price is approaching a bearish 200 SMA, a few pips below the current level. There's an immediate Fibonacci support around 111.25, but the pair needs to break below 110.90 to confirm a bearish continuation towards 110.50.”