USD/JPY bounces-off 113.50 as Nikkei moves-off lows

The Japanese yen managed to regain footing against its American counterpart in the Asian trading, sending USD/JPY to the mid-point of 113 handle after having faced rejection just shy of 114 levels.

USD/JPY extends the drop below 5-DMA

The dollar-yen pair stalled its retreat from near 114 region at the mid-point of 113 handle, as buyers were seen lurking at the last, as the Japanese stocks moved-off session lows. The major is last seen changing hands at daily highs of 113.63, down -0.20% on the day, with the recovery capped by 5-DMA located at 113.74.

A cautious tone prevalent amid markets and a broadly subdued US dollar continue to exert downward pressure on the major. The US dollar extends its corrective slide against its main peers, retracing almost a quarter of the Trump-win rally. While yesterday’s positive data and higher treasury yields also failed to lift the sentiment around the buck.

Focus now shifts towards the US fundamentals due later on the day, with the trade balance and factory orders data likely to be closely eyed among others.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 114.50 (psychological levels). A break above the last, the major could test 114.83 (10-month high) and 115 (zero figure) beyond the last. While to the downside, the immediate support is seen at 113.32 (10-DMA) next at 112.86 (daily S1) and below that at 112.53 (Nov 25 low).