The bulls were rescued by a bounce witnessed in the greenback across the board, lifting USD/JPY from fresh six-week lows struck at 112.57 in Asia opening trades today.
The spot was last seen exchanging hands at 113.09, up +0.40% on the day, and hovering close to session highs reached at 113.14 last hour. The major is back on the bids this Wednesday, as the bulls fought back control and brought an end to a week-long run of losses, with the move prompted by a corrective rally staged by the US dollar against its six major peers in wake of a recovery in the treasury yields after yesterday’s Trump’s comments induced massive slump.
Markets now eagerly await the US CPI figure to gauge next direction in the major. The consumer price index (CPI) is expected to rise to 2.1% annually from 1.7% last. The core figure is expected to tick up to 2.2% from the prior 2.1%. Apart from the data, Fed Chair Yellen’s speech could also have a significant impact on the spot.
USD/JPY Technical levels to watch
The major finds immediate resistance at 113.50 (psychological levels). A break above the last, the major could test 113.74 (5-DMA) and 114 (zero figure) beyond the last. While to the downside, the immediate support is seen at 112.57 (6-week low) next at 112.04 (daily S1) and below that at 111.58 (Nov 29 low).
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