USD/JPY turns positive, gap filling underway

USD/JPY is now trading in the positive territory around 108.30 despite oil driven risk-off in the European equity markets.

Gap down opening

Doha talks failed leading to a sharp drop in oil and uptick in the funding currencies. The pair had thus gapped lower in early Asia and had extended losses to 107.84 levels before the recovery began.

The spot clocked a high of 108.46 levels in Europe. The pan-European Stoxx 50 index is down 0.50%, however, the USD/JPY pair is now aiming to fill the gap.

USD/JPY Technical Levels

The immediate hurdle is noted at 108.86 (5-DMA + 10-DMA), above which prices could target 109.40 (Apr 13 high). Next major hurdle is seen at 109.73 (Friday’s high). On the other hand, a break below 107.84 (daily low), under which support is seen at 107.63 (Apr 11 low) and 107.00 levels.