USD/JPY looks to gathers traction near 113.50

After falling as low as the 112.90 area during overnight trade, USD/JPY has managed to retake the 113.00 handle and is currently looking to regain some buying interest in the mid-113.00s.

USD/JPY supported by US yields

Spot seems to have found some support in earlier sub-113.00 levels, as yields in the US money markets continue to bounce off FOMC-induced lows. In fact, the key US 10-year reference is currently gravitating around the 2.53% after shedding 10bp following the FOMC meeting on Wednesday.

There was no room for surprises at the FOMC meeting on Wednesday, with Chair J.Yellen failing to deliver a more hawkish than expected message and reiterating the already projected gradual path for interest rate hikes during this year.

In the Japanese docket, the BoJ stayed put at its meeting earlier in the Asian session, universally matching consensus. At his press conference, Governor H.Kuroda said the central bank has ruled out further deepening of interest rate into the negative territory.

Later in the US calendar, Initial Claims, the Philly Fed index, JOLTs Job Openings, Housing Starts and Building Permits are all due.

USD/JPY levels to consider

As of writing the pair is gaining 0.01% at 113.40 facing the initial hurdle at 113.68 (20-day sma) ahead of 114.10 (55-day sma) and then 114.91 (high Mar.15). On the flip side, a breakdown of 112.91 (low Mar.16) would aim for 111.67 (low Feb.28) and finally 111.57 (low Feb.7).