Having bottomed out near 112.40 region, the USD/JPY pair almost reversed the entire slide seen post-Tokyo open and now aims to test 113 handle.
USD/JPY finds support near Tuesday’s low
The major once again attempts recovery from 112.40 levels and now tries hard to take out the key resistance at 112.70 for further upside. The resurgence of the bullish momentum in the US dollar against its major peers boosted the recovery in USD/JPY. At the time of writing, USD/JPY turns positive and trades at 112.65.
Moreover, a minor recovery seen in the Asian stocks, particularly the Japanese equities, also added to the renewed bid tone seen around the dollar-yen pair. The Nikkei 225 now trades -1.20% versus -1.60% previous. In the day ahead, the major will continue to track the broader market sentiment in absence of relevant macro updates. While tomorrow’s China CPI data will be closely eyed.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 112.77 (daily high). A break above the last, the major could test 113 (round number). While to the downside, the immediate support is seen at 112.44/41 (Mar 8 & Daily Low) and below that at 112.14/00 (Mar 1 Low/ psychological levels).
(Market News Provided by FXstreet)