A fresh bout of selling interest caught the USD/JPY pair over the last hour, driving the prices in the red below 113 handle.
USD/JPY slips below hourly 200-SMA at 113.07
The phase of recovery from 112 handle fizzled post-Tokyo open, and the major witnessed almost 40-pips sell-off from daily tops reached at 113.22 as the greenback corrected lower against its major peers after the bulls cheered the stronger-than expected US durable goods data. Meanwhile the USD index drops -0.21% to 97.24, rallying as high as 97.74 the day earlier.
Further, markets seem to have shrugged-off the
persisting risk-on rally in the Asian equities as well as the softer Japanese inflation data, and continue to bid up the yen as the G20 meeting gets underway with the financial leaders crossing the wires.
The national core CPI fell 0.7% in January to be flat y/y, after recording a 0.1% increase in December. Tokyo’s CPI dropped at a steady rate of 0.1% y/y in February, coming in weaker than the forecast of an unchanged price level.
Later today, all eyes remain on a fresh batch of crucial US economic data, including that prelim GDP report, core PCE index, personal spending and consumer sentiment. Besides, FOMC Member Powell is due to speak in New York.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 113.07 (1h 200-SMA). A break above the last, the major could test 113.22/39 (daily & Feb 22 High). While to the downside, the immediate support is seen at 112.67/64 (1h 20-SMA/ 5-DMA) and below that at 112.39 (1h 100-SMA).
(Market News Provided by FXstreet)