USD/JPY regains 115.00 as Nikkei turns positive

The recovery attempts in USD/JPY from yesterday’s slide remains capped near 115.20 region, with the major now managing to regain 115 handle.

USD/JPY back above 5-DMA at 114.99

The dollar-yen pair stalled its overnight selling spiral in the Asian opening trades at 114.75, and attempted a solid recovery beyond 115 handle. However, the major continues to move back and forth in a 30-pips narrow range over the last hour, closely the tracking the downside consolidation phase seen in the greenback against its main competitors.

The latest leg higher in the USD/JPY pair can be mainly attributed to a fresh bout of buying witnessed in the Japanese equities, as risk-off moods eased a bit following the release of better-than expected China’s data dump. The major is last seen changing hands at 115.12, heading for a test of daily highs at 115.22, up +0.09% on the day.

In absence of relevant economic fundamentals due on the cards today, the major will remain at the mercy of the USD dynamics, as the FOMC begins its 2-day monetary policy meeting later today. While Wednesday’s Tankan manufacturing data from the Japanese docket will be closely eyed for fresh cues on next week’ s BOJ policy review.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 115.40 (Dec 9 high). A break above the last, the major could test 116 (zero figure) and 116.12 (multi-month high) beyond the last. While to the downside, the immediate support is seen at 114.75 (daily low) next at 114.37 (10-DMA) and below that at 114.02 (daily S2).