USD/JPY: Sellers in control, flirts with 114.00

Broad based correction behind the greenback appears to have gathered pace over the last hour, knocking-off USD/JPY below 114 handle.

USD/JPY tracks DXY lower

The retreat in the dollar-yen from ten-month tops accelerated in early Europe, as the USD bears flexed their muscles and extended the corrective slide, mainly driven by profit-taking and technical selling, after the major failed just shy of 115 handle. The major is last seen changing hands around 114 handle, having posted a daily low of 113.88, down -0.40% on the day.

Markets also readjust their positions ahead of Friday’s US labor market report, which will finally seal in a Dec Fed rate hike. In the meantime, focus now remains on the US jobless claims and ISM manufacturing PMI data due on the cards later today.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 114.50 (psychological levels). A break above the last, the major could test 114.83 (10-month high) and 115 (zero figure) beyond the last. While to the downside, the immediate support is seen at 113.68 (daily pivot) next at 113.13 (5-DMA) and below that at 112.80 (daily S1).