USD/JPY placed at session tops, around 112.30 area

Haresh Menghani FXStreet

After yesterday's volatile swing, the USD/JPY pair caught some fresh bids on Wednesday and moved farther beyond 3-week lows touched on Monday.

With the US Dollar entering a bullish consolidation phase, just below one-week highs, today's up-move lacked any fresh catalyst and could be attributed to some technical buying, especially in wake of the pair's repeated rebounds from the very important 200-day SMA support.

Adding to this, speculations that the US President Donald Trump was leaning towards nominating a Fed Chair, who would be more inclined to raise interest rates at a faster pace, and fading safe-haven demand remained supportive of the pair's up-move through early European session.

• Trump: Want tax reform "by Christmas"

Moving ahead, speeches by influential FOMC members - New York Fed President William Dudley and Dallas Fed President Robert Kaplan, along with the US housing market data - housing starts and building permits, would also be looked upon for some short-term trading impetus during early NA session.

• USD/JPY seen around 116.00 in 12-month view – Danske Bank

Technical levels to watch

Bulls would be eyeing for a strong follow through buying interest beyond mid-112.00s, above which the pair could aim towards testing 112.80-85 intermediate hurdle ahead of the 113.00 handle.

On the downside, 112.15-10 area now becomes immediate support to defend, which if broken could drag the pair back towards retesting 200-day SMA support near the 111.75 region.

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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