USD/JPY makes another run towards 112.00 amid notable USD demand

Dhwani Mehta FXStreet

The recovery in USD/JPY from 111.50 levels appear to have regained traction last minutes, driving the pair back towards daily tops posted at 111.88 in early Europe.

USD/JPY eyes OPEC decision for clarity on risk trend

The spot is on a steady recovery after having tumbled in the overnight trades, following the release of cautious FOMC minutes, which suggested gradual pace of tightening in the year ahead.

The US dollar caught a fresh bid-wave against its major peers in Europe, despite weaker treasury yields, offering the buyers some support around 111.70 levels.

However, it remains to be seen if the major can conquer 112 handle amid cautious tone seen in the European equities ahead of the OPEC outcome, which keeps the investors on the edge.

The USD/JPY pair will also get influenced by the upcoming US macro data, including the jobless claims and goods trade balance data, due later in the NA session.

USD/JPY Technical levels

Jim Langlands at FX Charts noted: “While the dailies remain rather negative, the 4 hour charts look positive and further short term gains could see another move towards 112.00/10 and then to 112.30, albeit possibly not today, and then to 112.75, which might be a decent sell area if we get there. On the downside, below the 111.47 session low, minor support will be seen at 111.45/50, a break of which could lead to a run towards 111.00 and then to 110.70 ahead of last Thursday’s low of 110.23.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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