USD/JPY falls back to 200-day MA support despite hawkish Fed

• The US dollar finds no takers in Asia despite hawkish Fed rate hike.
• USD/JPY risks falling below 200-day MA of 110.19.

The USD/JPY is on the defensive in Asia, adding credence to signs of a bearish reversal as indicated by yesterday's candle with a long upper shadow.

At press time, the pair is flirting with the 200-day MA support of 110.19.

The dollar bulls may have been demoralized by the fact that the ongoing policy tightening cycle will end sooner-than-expected as the Fed plans to accelerate the pace of rate hikes but does not see a higher neutral rate.

Also, the 10-year treasury yield failed to hold above 3 percent and added to the bearish pressure around the pair.

The spot could drop below 200-day MA in a convincing manner if the US retail sales, due at 12:30 GMT, print below estimates.

USD/JPY Technical Levels

Support: 110.19 (200-day MA), 109.94 (bullish 10-day MA), 109.66 (4H 100MA).

Resistance: 110.37 (session high), 110.85 (previous day's high), 111.40 (May 21 high).