USD/JPY off-lows, re-takes 115 on positive T-yields

The greenback is seen peeking into the green zone versus its major rivals last minutes, prompting a minor-bounce in the USD/JPY pair amid positive treasury yields, in yet another effort to retest 115 handle.

However, the yen continues to hold ground amid a cautious tone prevalent in markets, in the aftermath of mixed Chinese macro news, while developments with regard to the Brexit process and Dutch elections also add to the risk-averse market conditions, keep a lid on the spot.                                                          

Markets digest some clarity provided on Brexit ahead of the US inflation figures and the key FOMC and BOJ policy meeting scheduled later this week. The Fed is widely expected to hike rates by 25 bps on Wednesday, while the BOJ is expected to stand pat on Thursday, staying committed to keep 10yr yields around 0%, analysts at Nomura noted.

USD/JPY Technical levels to watch             

The major finds immediate resistance at 115.53/50 (classic R3/ psychological levels). A break above the last, the major could test 115.62 (Jan 19 high) and 116 (zero figure) beyond the last. While to the downside, the immediate support is seen at 114.42 (100-DMA/ 10-DMA) next at 113.75/59 (20 & 50-DMA) and below that at 113.06/113 (Feb 16 low/ zero figure).