USD/JPY regains bids in Asia, 113 back on sight?

Dhwani Mehta FXStreet

The USD/JPY pair is seen trying hard to take on the recovery from 10-day troughs, but in vain, as the recovery remains restricted amid a broadly muted US dollar and mild weakness seen around US treasury yields.

The spot is last seen exchanging hands at 112.75, having posted a day’s high at 112.95 and day’s low at 112.59. Moreover, the bulls extend its struggle to retest 113 handle, as negative Japanese equities underpin the safe-haven flow for the yen, hence, keeping a check on the USD/JPY recovery.

Nothing of note for the major in terms of economic data until the US session, and therefore, persisting RO-RO sentiment will continue to drive markets as dust settles over the Mnuchin’s interview aftermath.

USD/JPY Technical levels to watch

The major finds immediate resistance at 113.06/09 (20 & 5-DMA). A break above the last, the major could test 113.29 (10-DMA) and 113.47 (1h 200-SMA) beyond the last. While to the downside, the immediate support is seen at 112.53 (10-day low) next at 112.28 (Feb 3 low) and below that at 112 (round figure).

Sell 26%

Buy 74%

Avg Sell Price 113.38

Avg Buy Price 113.36

Liquidity Distribution

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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