USD/JPY on the offers and below 117.50

The offered around the USD/JPY pair is seen gaining traction once again, as the greenback’s retreat picks-up pace against its major peers, after having witnessed a bullish opening gap starting 2017.

The pair is last seen exchanging hands at fresh three-day highs of 117.37, losing -0.13% on the day. The USD/JPY pair is seen oscillating back and forth in a 30-pips narrow over the last hours, amid stalled USD buying.

Moreover, the Japanese yen stands resilient by risk-on market profile, which usually dulls yen’s appeal as a safe-haven asset. Further, a bout of profit-taking slide in the major cannot be ruled out ahead of a fresh batch of US economic data lined up for release later in the NA session, including the ISM manufacturing PMI.

Meanwhile, trading is expected to remain light amid an extended holiday-break in Japan.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 117.50 (psychological levels). A break above the last, the major could test 117.83 (Dec 28 high) and 118 (zero figure) beyond the last. While to the downside, the immediate support is seen at 117.03 (5-DMA) next at 116.50 (psychological levels) and below that at 116.33 (daily S2).