USD/JPY bounces-off 112.50 once again

The USD/JPY pair faded a spike from above 113 handle and reverted towards daily lows near the mid-point of 112 handle, only to meet fresh bids at the last and attempt recovery back towards 113 handle.

The spot was last seen exchanging hands at 112.92, now aiming for a retest of daily highs scored previously at 113.14, up +0.14% on the day. The US dollar trades choppy in a narrow range versus its Japanese rival, with the bulls now trying hard to take on yet another recovery attempt above 113 handle, as risk-off persists ahead of the UK’s Supreme Court Brexit ruling, which may stir massive volatility across the fx board.

While Trump’s withdrawal from the TPP deal combined with recent comments from US Treasury Secretary Mnuchin, also keeps any recovery short-lived in the major. While extension of the losses in the Japanese stocks alongside better Japanese PMI data help keep the sentiment buoyed around the safe-haven yen.

Next on tap for the major remains the US manufacturing PMI data due later in the NA session, until then the USD price-action and RO-RO trends will drive USD/JPY.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 113.75 (5-DMA). A break above the last, the major could test 113.92 (10-DMA) and 114.50 (psychological levels) beyond the last. While to the downside, the immediate support is seen at 112.53(weekly low) next at 112.09 (daily S1) and below that at 111.58 (Nov 29 low).