USD/JPY attempting a fresh move towards 113.00 handle

Haresh Menghani FXStreet

Having refreshed monthly lows near 112.25 region, the USD/JPY pair has managed to recover previous session's lost ground and seems to have snapped 5-days of losing streak.

Currently trading around 112.75-80 band, the pair was seen attempting a fresh move towards reclaiming the 113.00 handle amid slight improvement in investors' risk appetite. Macron’s win in the first French Presidential debate triggered a fresh wave of risk-on trade and dented demand for traditional safe-haven assets, including the Japanese Yen.

Meanwhile, persistent greenback selling pressure, against the backdrop of less hawkish Fed outlook, has failed to provide any fresh bullish impetus. In fact, the key US Dollar Index has now weakened back below the key 100.00 psychological mark and seems to be only factor collaborating towards restricting further up-move and capping the pair below 100-day SMA hurdle near 113.00 handle.

Later during the day, traders are likely to take cues from New York Fed President William Dudley's speech ahead of the US economic docket, with broader market risk sentiment also playing a key role in determining the pair's movement on Tuesday.

Technical levels to watch

Momentum above 112.90 (yesterday's high) could get extended towards 100-day SMA resistance near 113.10 region, above which the pair is likely to accelerate the up-move towards 50-day SMA hurdle near 113.60 region.

On the downside, retracement back below mid-112.00s might now drag the pair towards 112.00 round figure mark before the pair eventually drops to yearly lows support near 111.65-60 region.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 113.11

40% Bullish
30% Bearish
30% Sideways

Bias Bullish

1 Month

Avg Forecast 114.31

59% Bullish
29% Bearish
12% Sideways

Bias Bullish

1 Quarter

Avg Forecast 114.81

56% Bullish
22% Bearish
22% Sideways

Bias Bullish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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