USD/JPY re-attempts 112 handle amid rebound in T-yields

Fresh bids emerged once again near 111.70 region, allowing a bounce in USD/JPY back above 112 handle. However, it remains to be seen if the spot manages to survive above the last amid negative European equities.

The latest leg higher in the major can be mainly attributed to a rebound in the treasury yields across the horizon, triggering a fresh bid-wave behind the US dollar versus its main rivals, as investors brace for a fresh batch of US economic releases and Fedspeaks.

The US core PCE price index, personal spending, consumer sentiment and Chicago PMI data will wrap the Brexit week.

USD/JPY Technical levels to watch             

The major finds immediate resistance at 112.26/29 (classic R1/ Fib R2). A break above the last, the major could test 112.57 (20-DMA) and 112.96/113 (20-DMA/ round figure) beyond the last. While to the downside, the immediate support is seen at 111.60 (daily pivot) next at 111.37/26 (5 & 10-DMA) and below that at 110.69/50 (Mar 30 low/ psychological levels).