USD/JPY Recovery Stalls Near 113.70 Post-China CPI
A fresh spurt of buying interest gripped the USD/JPY pair over the last hour, after markets were relieved somewhat after the Chinese CPI figures unexpectedly rose in Feb.
USD/JPY bounced-off lows below hourly 100-SMA
The bulls were rescued by the much higher than expected Chinese CPI figures, which appeared to calm China slowdown fears and spurred renewed optimism across the financial markets. At the time of writing, USD/JPY trades at 113.60, reversing a spike to 113.69 session highs, still up 0.23% on the day.
However, the upside seems limited as markets now assess the Chinese data and its implications on the global economy. While the yen tries hard to recover ground, with the latest comments from Japan PM Abe’s adviser, Honda, crossing the wires. Mr. Etsuro Honda told reporters that BOJ may refrain from easing next week.
Meanwhile, another data-quiet trading session today, with the usual weekly jobless claims on the cards. However, the ECB policy meeting will remain the main highlight for fresh cues on the USD moves.
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 114.26/28 (Mar 4 & 3 High). While to the downside, the immediate support is seen at 112.94/84 (1h 20 & 50-SMA) and below that at 112.44/23 (Mar 8 & 9 Low).
(Market News Provided by FXstreet)
