USD/JPY trims early recovery gains, still comfortable above 112.00 handle

   •  Bullish traders seemed unimpressed by modest USD rebound/resurgent US bond yields.
   •  Risk-recovery/positive equities also do little to provide any fresh bullish impetus.

The USD/JPY pair failed to capitalize on its early positive momentum and quickly retreated around 25-pips from session tops.

The pair stalled its overnight rebound from near one-month lows and once again met with some fresh supply near mid-112.00s, rather unaffected by a modest US Dollar rebound. 

With investors looking past Thursday's softer US consumer inflation figures, a fresh leg of an upsurge in the US Treasury bond yields helped ease the USD bearish pressure but failed to provide any fresh bullish impetus.

Even indications of some risk-recovery, as depicted by a positive tone around global equity markets and which tends to undermine the Japanese Yen's safe-haven demand, also did little to assist the pair to build on the attempted recovery.

The price action now seems to indicate that the near-term selling bias might still be far from over and hence, it would be prudent to wait for a strong follow-through buying before confirming that the pair might have bottomed out in the near-term.

Moving ahead, traders now look forward to the release of Prelim UoM Consumer Sentiment, the only highlight from today's relatively thin US economic docket, in order to grab some short-term opportunities later during the early North-American session.

Technical levels to watch

Any subsequent slide might continue to find immediate support near the 112.00-111.95 region, below which the pair is likely to fall further towards its next support near mid-111.00s. On the flip side, a sustained move beyond the 112.50-60 immediate supply zone might now trigger a short-covering bounce and lift the pair further towards reclaiming the 113.00 handle.
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.