USD/JPY regains bids in Asia, 113 back on sight?

The USD/JPY pair is seen trying hard to take on the recovery from 10-day troughs, but in vain, as the recovery remains restricted amid a broadly muted US dollar and mild weakness seen around the US treasury yields.

The spot is last seen exchanging hands at 112.75, having posted a day’s high at 112.95 and day’s low at 112.59. Moreover, the bulls extend its struggle to retest 113 handle, as negative Japanese equities underpin the safe-haven flow for the yen, hence, keeping a check on the USD/JPY recovery.

Nothing of note for the major in terms of economic data until the US session, and therefore, persisting RO-RO sentiment will continue to drive markets as dust settles over the Mnuchin’s interview aftermath.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 113.06/09 (20 & 5-DMA). A break above the last, the major could test 113.29 (10-DMA) and 113.47 (1h 200-SMA) beyond the last. While to the downside, the immediate support is seen at 112.53 (10-day low) next at 112.28 (Feb 3 low) and below that at 112 (round figure).