USD/JPY off lows, but still below 10-DMA
Broad based US dollar retreat appears to have stalled over the last hours, allowing a tepid-bounce in USD/JPY back towards the mid-point of 113 handle, with strong offer seen lying at 10-DMA barrier of 113.54.
The spot is last seen exchanging hands at 113.44, reversing a dip to 113.33, session lows. The major found some support from dovish comments from the BOJ Governor Kuroda, after he said that the central bank is prepared to ease further, if required to hit 2% price target.
Earlier today, USD/JPY rapidly retreated from 113.72 highs after the US treasury yields came under pressure, following Cleveland Fed President Mester’s cautious comments on the rate hike outlook.
Next of note for the major remains the US existing home sales data, besides, Fed speech from official Powell will be closely heard ahead of the FOMC minutes scheduled for release in the American afternoon.
USD/JPY Technical levels to watch
The major finds immediate resistance at 113.78 (previous top). A break above the last, the major could test 114 (round figure) and 114.36 (Feb 16 high) beyond the last. While to the downside, the immediate support is seen at 113.00 (round figure) next at 112.75 (Feb 20 low) and below that at 112.58 (Feb 17 low).
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.
