USD/JPY retreats amid reports of US planning airstrikes in Syria

• Yen recovers against US Dollar after equity prices and US yields peak.
• USD/JYP retreats further on reports about possible US strike in Syria.

The USD/JPY pair is up for the day but during the American session moved off highs. It reached a 6-day high at 107.42 and pulled back. Recently the retreat from the top accelerated after CNBC reported that the US was ready to strike targets in Syria.

Price dropped to 107.05, finding support at the 20-hour moving average. As of writing was trading at 107.15/20, up 35 pips for the day. Despite the gain, the pair continues to move sideways, limited to the upside by 107.50.

The greenback is posting mix results in the market. The positive tone that followed the release of the FOMC minutes yesterday eased recently. Regarding the yen, it moved off daily lows but it is still lower, weakened by higher US yields and amid a rally in Wall Street. The DOW JONES was rising 1.1%.

Levels to watch

To the upside, the key level is the 107.50/55 area, above the next resistance, is seen at 107.90. On the flip side, immediate support could be located at 107.05 (20-hour moving average) followed by 106.95 and 106.65.