USD/JPY fades spike to 107.50, drop in S&P 500 futures hurts

• USD/JPY fails to break above 107.50 despite an uptick in Asian stocks.
• Drop in the S&P 500 futures may have played a spoilsport.

Asian stocks are reporting gains, but the USD/JPY is not impressed.

The currency pair failed to take out offers around 107.50 and fell back to 107.30. The retreat also marks a failure to take out the bull flag resistance.

S&P 500 futures drop

The dollar's reluctance to blow past resistance at 107.49 (April 5 high) could be associated with a 0.30 percent drop in the S&P 500 futures. The weakness in the US index futures suggests the markets are not buying the US President Trump's (positive) U-turn on trade and Syria crisis.

The pair will likely continue tracking the action in the US index futures. Also, Fed's Bullard speech, due at 13:00 GMT, could influence the US dollar.

USD/JPY Technical Levels

A convincing break above 107.50 would allow a rally to 107.91 (Feb. 21 high) and 108.28 (Jan. 26 low). On the downside, the violation at 107.19 (ascending 21-hour MA) would expose support lined up at 106.87 (200-hour MA) and 106.80 (50-day MA).