USD/JPY pair rose for the 7th consecutive session as capital outflow from Japan ahead of new fiscal year gains pace.
Seasonality at play
March being a fiscal year end in Japan, usually sees repatriation of profits on overseas investments leading to a rise in Yen, which did happen in the first half of the month. The pair dipped to a low of 110.67, before the recovery was set in motion.
The JPY was offered in Asia as capital outflow is gathering pace ahead of the new fiscal year beginning on April 1st. The spot clocked a high of 113.69 and now trades around 113.50 levels.
USD/JPY Technical Levels
The immediate hurdle is seen at 113.78 (rising trend line level), above which the pair could target 114.00 and 114.66 (50-DMA). On the other hand, a breakdown of immediate support at 113.06 (hourly 50-MA) would expose 112.70 (hourly 100-MA) and 112.32 (hourly 200-MA).
(Market News Provided by FXstreet)