USD/JPY fades spike to 113.00

The Dollar-Yen pair retreated from the session high of 113.14 levels to trade largely unchanged on the day around 112.63 levels.

Rejected at 5-MA on 4-hour chart

The drop from the session high marked another failure to take out the 5-MA o 4-hour time frame. On the technical charts, bears appear in control as the spot continues to move in a falling channel.

US President Trump has withdrawn from TPP and that could rattle the risk sentiment. Ahead in the day, the demand for the Japanese Yen depends on how the equity markets react to the rising threat of protectionism. US existing home sales data and Richmond Fed manufacturing index could influence the dollar side of the story.

USD/JPY Technical Levels

A break below 112.60 (Jan 17 low) would open the doors to 111.99 (23.6% of Trump rally) and then to 111.36 (Nov 21 high). On the other hand, a break above 113.13 (session high) would expose 113.62 (Jan 16 low), above which the spot could target 114.00 (zero figure).