USD/JPY: Will the buyers retain control above 113 handle?

The major is seen consolidating the upside around 113 handle, with the bulls trying hard to extend gains beyond the last, tracking the positive tone seen in the Japanese stocks and Treasury yields.

More so, mixed Japanese trade figures combined increased nervousness ahead of Sunday’s Japanese election, keep the Yen on the back foot against its American counterpart. However, further upside looks dicey, as the US dollar lacks recovery momentum against its major peers, in the wake of dismal US housing data. Moreover, markets have already priced-in a Dec Fed rate hike, as already reflected in the recent USD rebound. At the time of writing, the spot is seen trading at 113.03, heading for a test of 103.09 highs and up +0.09% on the day.

Next of note for the major remains the US datasets due later in the NA session for fresh momentum on the prices.

USD/JPY Technical View

Jim Langlands at FX Charts offers key technical levels: “113.20 will be decent resistance, but above there 113.43 (6 Oct high), 114.00 and 114.49 (11 July high) would eventually beckon. The dailies currently look less certain of the upside, and on the downside, support today should arrive at around 112.60 and then at the 200 HMA at 112.30.”