USD/JPY Back on the Bids, Re-Takes Daily Pivot
The bears are seen fighting hard over the last hour to win over control amid poor PMI reports from the Asian economies, while persisting risk-off moods also keeps the downside exposed in USD/JPY.
USD/JPY sold-off at daily pivot (110.82)`
A classic risk-off theme prevails in the Asian trading this Wednesday, with the safe-haven yen trying to keep an upper edge over its American counterpart, although downbeat Nikkei final manufacturing PMI data weighs on the Japanese currency, lifting USD/JPY further away from the mid-point of 110 handle.
Moreover, a modestly higher greenback against its major peers on the back of higher US treasury yields, also aids the minor-pullback seen in the major. At the moment, USD/JPY trades modestly flat at 111.71, reversing a dip to 110.45, session lows.
Looking ahead, markets now eagerly await the ISM manufacturing PMI report for further momentum on the US dollar, particularly after mixed data releases seen a day before.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 111 (round number). A break above the last, the major could test 111.36/45 (April 5 & May 30 High). While to the downside, the immediate support is seen at 110.45/26 (Daily low/ 10-DMA) and below that at 110/109.98 (round number/ daily S2).