USD/JPY fails to resist above 114 amid subdued Treasury yields
|A fresh buying-wave gripped the USD/JPY pair in early Asia on the back of Fed member Brainard’s hawkish remarks, sending the rate to fresh two-week highs at 114.16 levels, before easing slightly amid subdued performance seen behind the treasury yields, which keeps a lid on the USD index.
The rally in USD/JPY also lost legs after the Nikkei 225 index moved-off 15-month tops to trade below 19,600 levels, while the greenback continues to consolidate against its major rivals near seven-week tops reached just under 102 handle.
Looking, we have limited economic releases on the cards, and hence, the spot will remain at the mercy of the USD dynamics and risk-on sentiment, in wake of a March Fed rate hike back on the table and Trump’s infrastructure boost.
USD/JPY Technical levels to watch
The major finds immediate resistance at 114.16/29 (2-week high/ daily R1). A break above the last, the major could test 114.50 (Feb 14 high/ psychological levels) and 114.85 (daily R2/ Fibonacci R3) beyond the last. While to the downside, the immediate support is seen at 113.70 (100-DMA) next at 113.50 (daily pivot) and below that at 113.07/02 (5 & 10-DMA confluence).
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