USD/JPY well bid for second straight session
|The USD/JPY pair was seen building on Monday's recovery move back above 113.00 handle and jumped to 3-day tops amid renewed greenback strength.
Currently trading around 113.55 region, off few pips from session peak, the greenback regained traction during Asian session on Tuesday in wake of hawkish comments from Philadelphia Federal Reserve Bank President Patrick Harker, who supported interest rate-hike move at the Fed's next monetary policy meeting in March. The comments drove up the US Treasury bond yields and remained supportive for resurgent demand for the US Dollar.
Meanwhile, today's disappointing release of all-industry activity index from Japan and improving investors' risk appetite further undermined the Japanese Yen and collaborated to the pair's up-move on Tuesday.
Later during the day, speeches from various Fed officials would be scrutinized for possibilities of a Fed rate-hike action in March before investors' gain fresh insight over the Fed's near-term monetary policy outlook from the minutes of the latest FOMC meeting, due on Wednesday.
Technical levels to watch
A follow through buying interest above 113.70-75 area is likely to lift the pair beyond 114.00 handle towards its next resistance near 114.25-30 region. On the downside, retracement back below 113.25-20 immediate support is likely to drag the pair back towards 112.80 horizontal support before eventually dropping to 112.40 strong support.
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