USD/JPY retreats from 10-month tops, but keeps 115.00

Having peaked at 10-month highs at Tokyo open, the USD/JPY pair took a breather and came under fresh selling pressure over the last hour amid a minor-correction seen in the US dollar across the board.

USD/JPY trades above all major DMAs

The dollar-yen pair is seen retracing a part of the intraday rally to new ten-month tops, largely on the back of stalled US treasury yields buying, which triggered a corrective slide in the US dollar against its main peers.

Also, the major tracks a minor-retreat in the Japanese stocks, with the Nikkei 225 index now reverting towards daily lows. Calendar-wise, we had the Japanese core machinery data, which came in much stronger-than expected, and therefore, the upbeat Japanese data also could have helped rescue the JPY bulls.

However, the retreat remains restricted amid persisting risk-on sentiment, spurred by weekend’s OPEC and non-OPEC oil output deal agreement. While expectations of Fed tightening this week also keeps the sentiment buoyed around the USD/JPY pair.

The spot is last seen changing hands at 115.25, reversing from 10-month highs of 115.62, down -0.10% on the day.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 115.62 (multi-month high). A break above the last, the major could test 116 (zero figure) and 116.50 (psychological levels) beyond the last. While to the downside, the immediate support is seen at 115 (round number) next at 114.77 (5-DMA) and below that at 114.29 (10-DMA).