USD/JPY extends sell-off below 113 handle

The offered tone behind the US dollar keeps growing larger in the European session, knocking-off USD/JPY below 113 handle.

Yen gains on risk-aversion

The dollar-yen pair faced double whammy as we stepped into the European session, accelerating its decline below 113 handle, on the back of an extension of the downside correction in the US dollar against its major peers on one hand. While negative performance on the European equities coupled with weaker oil prices, triggered a renewed risk-off wave and hence, bolstered the safe-haven bids for the yen on the other.

Further, markets resort to profit-taking in USD/JPY, after the recent broad based strength in the US dollar, as traders adjust their positions heading into the NFP week ahead. In the meantime, the major may get influenced by the US economic news due on the cards later today.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 113.90 (multi-month high). A break above the last, the major could test 114.33 (daily R2) and 114.56 (March high) beyond the last. While to the downside, the immediate support is seen at 112.65 (daily low) next at 112.34 (Nov 24 low) and below that at 112.00 (round figure).