USD/JPY takes a sharp U-turn, regains 114 and beyond

The USD/JPY pair is making a solid comeback from the lowest levels since Dec 8, with the bulls now look to climb back above 114.50 levels.

The latest leg higher in the major is mainly driven by a sharp pullback seen in US treasury yields across the time horizon. Additionally, a renewed buying-wave seen across the commodities’ sector eased risk-off moods somewhat, thus, reducing demand for the yen as a safe-have.

The spot was last seen exchanging hands at 114.34, recovering sharply from five-week lows of 113.75 reached last hours, still down -0.92% on the day. All eyes now remain on the US jobless claims and speeches by Fed officials Evans and Harker due later in the NA session. While Fed Chair Yellen’s speech and Chinese trade data will grab the eyeballs in the Asian morning tomorrow.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 115 (round figure). A break above the last, the major could test 115.50 (daily pivot) and 115.74 (5-DMA) beyond the last. While to the downside, the immediate support is seen at 113.75 (5-week lows) next at 113.11 (Dec 8 low) and below that at 112.87 (daily S2).