Having bounced-off a dip to 113.50 levels pre-China open, the USD/JPY pair now continues to move back and forth in a slim range amid mild risk-off seen in Asia so far.
USD/JPY supported at 113.50
The dollar-yen pair is seen making minor recovery attempts from session lows and reverts to the hourly 100-SMA near 113.70, although the recovery lacks momentum, as markets remain unnerved following China’s announcement of lower GDP target range (6.5%-7%) for 2016, and seek safe-havens such as the yen. At the time of writing, USD/JPY recovers to 113.70, still down -0.06%.
Moreover, the ongoing weakness in the Japanese stocks also keeps the yen underpinned across the board. The Nikkei 225 index declines -0.45% and nears 17k mark. However, broad based USD bounce combined with BOJ’s Kuroda’s defensive comments on the central bank’s monetary policy, aids the recovery in USD/JPY.
Nothing of note for the major in the day ahead, hence, the broader market sentiment and oil price action will be closely watched for further momentum. Besides, the Fed speaks and the US labour market conditions report will be also eyed.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 114 (round number). A break above the last, the major could test 114.28/58 (Mar 3 & 2 High). While to the downside, the immediate support is seen at 113.44/35 (10 & 20-DMA) and below that at 113.13 (1h 200-SMA).
(Market News Provided by FXstreet)