USD/JPY in bearish consolidation around 108.30, eyes on US data

The USD/JPY pair stalled its tepid-recovery just shy of 108.50 barrier and eased somewhat, as risk sentiment remains under pressure amid lingering geo-political tensions and weaker oil prices. 

The spot enters a consolidation phase and remains within a close proximity to fresh five-month troughs reached earlier at 108.14 levels. Moreover, the JPY bulls keep control amid risk-off market profile, as reflected by higher CBOE Volatility Index (VIX) – a fear gauge. The VIX futures rise +2% to near 16.30 levels, suggesting risk-off at full steam.

Meanwhile, the treasury yields across the curve also consolidate the Asian drop, leaving USD index in a tight range around 100.30 levels.  Later today, markets will continue to keep a close eye on the developments surrounding the North Korean geo-political tensions and also on the upcoming US datasets for fresh USD moves.

USD/JPY Technical levels                 

A break above 108.46/68 (daily pivot/ 5-DMA) would expose 109 (zero figure) and 109.37/ 69 (1h 100-SMA/ 10-DMA). On the other hand, a breach of support at 108 (round number) could yield a test of 107.88 (Classic S2/ Fib S3) and 107.52/50 (Classic S3/ psychological levels).