USD/JPY retests 113 amid positive equities

By FXStreet The yen bulls took a breather after a 2-day climb in the Asian trades, now lifting USD/JPY back towards 113 handle.

USD/JPY supported at 112.50

The improving appetite towards riskier assets such as the equities, industrial metals etc., weighed heavily on the demand for the safe-haven yen, and hence, lifted USD/JPY from a five-day trough reached at 112.28 last Friday. At the time of writing, USD/JPY gains 0.28% to 112.98, re-attempting 113 handle.

The Asian markets rallied this Monday on the back of a rebound in the commodities’ prices, which helped boost the overall market sentiment. Japan’s Nikkei pares gains and now trades 0.60% higher, Australia’s ASX 200 rises 0.77%, while the Shanghai Composite rallies nearly 1%.

Moreover, weak Japanese manufacturing index as well as BOJ Chief Kuroda’s cautious tone, as he spoke in the parliament, both further weighed on the yen against its American rival. Nothing of relevance for the major in the day ahead, except for the US flash manufacturing PMI reading lined up for release later in the NY session.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 113.20/33 (1h 50-SMA/ 10-DMA). A break above the last, the major could test 113.56/65 (1h 200 …read more

Source:: FX Street