The bulls appear to take a breather after the latest uptick, keeping USD/JPY in close proximity of intraday highs posted last hour at 112.79.
The spot is seen consolidating the Asian rebound, after the bulls regained control post-Tokyo open amid a renewed risk-aversion wave triggered by Macron’s win in the first French presidential debate. With risk-on trades back in vogue, investors gave up safe-havens such as the yen in search of higher returns.
In the session ahead, USD/JPY may accelerate its advance and could regain 113 handle, as the European traders hit their desks and cheer the results of the French presidential debate. Meanwhile, the spot could also get influenced by Fed Dudley’s speech and the upcoming US macro data.
USD/JPY Technical levels to watch
The major finds immediate resistance at 112.91/113 (Fib R2/ round number). A break above the last, the major could test 113.44/50 (50-DMA/ psychological levels) and 113.65/76 (10 & 20-DMA) beyond the last. While to the downside, the immediate support is seen at 112 (round number/ multi-week low) next at 111.67/57 (Feb 26 & 7 low) and below that at 111.32 (Nov-end lows).
- R3 113.03
- R2 112.91
- R1 112.80
- PP 112.69
- S1 112.58
- S2 112.46
- S3 112.35