USD/JPY testing 113.30 resistance once again

The bulls take breather from a solid recovery staged by USD/JPY from 112.08 lows, as 113.30 once again acts a strong resistance, limiting the reversal on the second occasion.

The major is now seen consolidating the recovery as the buying interest around the US treasury yields appears to have faded somewhat, in-turn applying brakes on broad based USD correction from yesterday’s massive sell-off.

Trump’s fresh round of USD jawboning coupled with weak US fundamentals refueled the ongoing bearish run in the greenback, adding to BOJ induced USD/JPY selling spiral.

In the day ahead, the spot will get influenced by the US ADP jobs report and ISM manufacturing PMI, which will be reported ahead of the much-awaited Fed decision.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 113.77 (10-DMA). A break above the last, the major could test 113.91 (5-DMA) and 114.17 (20-DMA) beyond the last. While to the downside, the immediate support is seen at 113 (zero figure) next at 112.64 (daily low) and below that at 112.08 (9-week low).