FXStreet (Mumbai) – A renewed bout of buying interest was seen around the“> USD/JPY pair over the last hours, especially with the Caixin Chinese manufacturing PMI coming in better than estimates.
USD/JPY capped by 200-DMA
The risk sentiment appears to improve a bit following the release of Caixin China PMI, which provided fresh support to the bulls, lifting USD/JPY from near session lows around hourly 20-SMA at 120.07 towards 5-DMA at 121.26.
However, the upside remains capped as the Asian equities are seen trading mixed, while the weakness in the commodities and the treasury yields also keep the prices confined below the 200-DMA barrier at 121.47. Meanwhile, Japan’s Nikkei trades +1.50%, Oil drops nearly -1.50% while the 10-year benchmark treasury yields are down -0.65%. At the time of writing, USD/JPY trades 0.07% higher at 121.21.
Looking ahead, a host of US data is lined up release today, including the ISM manufacturing PMI, Fed’s PCE index, may provide fresh momentum on the pair. While the US payrolls data due later this week will remain the main highlight.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 121.47/50 (200-DMA/ round number). A break above the last, the major could test 122.22 (Dec 11 High). While to the downside, the immediate support is located at 121 (psychological levels/ daily S2) below which 120.73 (100-DMA) would be tested.
(Market News Provided by FXstreet)