USD/JPY reverts towards daily lows amid fresh USD selling

Dhwani Mehta FXStreet

Having failed several attempts to touch 113 handle, the USD/JPY pair drifted back to the familiar range near 112.75 levels, as the US dollar stalled its corrective mode and reverted to the red zone amid persistent weakness seen around treasury yields.

The spot is last seen exchanging hands at 112.73, flirting with session lows struck at 112.67. The European traders reacted negatively to the US treasury secretary Mnuchin’s comments and sold-off the greenback across the board.

Moreover, a negative start to the European markets refueled risk-off moods on the market, which added to the renewed weakness in the major. Focus now remains on the US new home sales and revised consumer sentiment data for fresh momentum on the prices.

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).

1. R3 114.61
2. R2 114.20
3. R1 113.91
PP 113.50
1. S1 113.20
2. S2 112.79
3. S3 112.50

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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