USD/JPY closes bearish opening gap en route 112.75

The US dollar extends its renewed upside across the board, now pushing USD/JPY above the mid-point of 112 handle in a bid to test Friday’s high of 112.62.

USD/JPY eyes 200-DMA at 112.75

Amid a better risk tone and mixed Japanese manufacturing dataflow, the USD/JPY pair extends the bounce from lows struck just ahead of 112 handle after having witnessed a bearish opening gap on Monday.

Broad based recovery in the US dollar from multi-month troughs picked-up pace amid higher-yields across the horizon, as investors eagerly await fresh hawkish hints from the FOMC minutes due on the cards in the week ahead.

Moreover, the latest headlines on the BOJ’s future by the Japanese PM Abe’s adviser also weighed down somewhat on the yen. Next of relevance for the major remains the manufacturing PMI reports from the US, including the key ISM PMI, which will provide fresh trading impetus on the prices.

USD/JPY Technical levels                 

According to Valeria Bednarik, Chief Analyst at FXStreet, “A stronger resistance comes at 112.90, where the pair topped for the week and the 23.6% retracement of its latest bullish run. In the 4 hours chart, the 100 SMA has crossed above the 200 SMA, both in the 111.000 region, while technical indicators turned lower within positive territory, suggesting the pair may need to surpass the mentioned high to gain enough upward strength to extend its advance this Monday.”