USD/JPY choppy around 5-DMA amid thin markets

The USD/JPY pair is seen trading quite choppy so far this session, with the JPY bulls struggling to keep the bids amid reports that the Japanese government has approved record spending in its FY 2017/18 budget.

USD/JPY fades a spike to 117.70

The dollar-yen pair witnesses two-way trades in Asia, fluctuating between gains and losses amid thin liquidity conditions and persistent weaker tone seen behind the US dollar across the board.

While the Japanese stocks remain under pressure, despite a record $ 830 billion spending budget announced by the government for FY 2017/18, underpinning the yen’s appeal as a safety bet.

Over the last hour, the major spiked to 117.71 highs on the Japanese budget announcement, although quickly erased gains in response to some selling seen in the US treasury yields across the curve. The spot is last seen changing hands around 117.55, almost unchanged on the day,

All eyes now remain on a fresh batch of US economic releases, including the GDP, durable goods orders and jobless claims, due to be reported in the NA session.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 118.07 (previous high). A break above the last, the major could test 118.43 (Dec 16 high) and 118.67 (10-month highs) beyond the last. While to the downside, the immediate support is seen at 117.13 (10-DMA) next at 116.56 (daily S2) and below that at 116 (zero figure).