The bulls appear to have given up in the Asian trades this Friday, after having several attempts to break above the stiff resistance placed just shy of hourly 200-SMA at 113.40.
USD/JPY supported at 113
The dollar-yen pair is still licking the post-ECB wound and now struggles to extend its recovery mode further beyond 113.35-40 zone as the subdued trading on the Asian markets continue to underpin the safe-haven demand for the yen. At the time of writing, USD/JPY trades muted around 113.20, while Japan’s Nikkei drops -0.90% to 16,705 points.
The major is attempting a recovery from ECB induced lows reached Thursday at 112.63 after the greenback slumped to fresh four-week lows against its major peers.
Meanwhile, the yen pays little heed to the downbeat Japan manufacturing index and remains better bid amid mild risk-averse conditions this session. Later today, nothing of note for the major except for the US import prices data, which is expected to have limited impact on the prices.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 113.48/50 (Mar 9 high/ psychological levels). A break above the last, the major could test 114 (round number). While to the downside, the immediate support is seen at 112.80/79 (daily low) and below that at 112.44/23 (Mar 8 & 9 Low).
(Market News Provided by FXstreet)
