USD/JPY bounces-off 113, but stays below 113.50

The recovery in USD/JPY lost steam just shy of 113.50 levels, with the prices now consolidating the Asian gains amid risk-on market profile.  

The spot was last seen exchanging hands at 113.37, keeping range near 5-DMA located at 113.39, up +0.06% on the day. The major remains better bid amid a minor-recovery in the treasury yields and rallying Japanese stocks, which boost the risk-on flows into the spot.

Moreover, Japan PM Adviser Honda’s jawboning the currency continues to weigh on the Japanese yen, keeping USD/JPY supported. Honda noted that the Yen may weaken past 120 USD this year.

Focus now shifts towards the US fundamentals due later on the day, while Trump headlines will continue to drive the broader market sentiment.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 113.79 (10-DMA). A break above the last, the major could test 114 (zero figure) and 114.50 (psychological levels) beyond the last. While to the downside, the immediate support is seen at 112.86 (daily S1) next at 112.53 (weekly low) and below that at 112 (round number).