USD/JPY supported above 111 amid resurgent USD demand

Fresh bids emerged just ahead of 111 handle in early Europe, allowing a tepid bounce in USD/JPY over the last hour, as the greenback picks-up pace across the board. The USD index broke higher from the Asian consolidation box and now prints fresh daily tops at 99.65 levels, up 0.11% on the day.

The bid tone behind the US dollar gained momentum after GBP/USD met fresh supply, with the European traders hitting their desks and unwinding their GBP longs, as the Article 50 trigger looms.

The Article 50 trigger is expected to drive the sentiment in the day ahead, which will have a significant impact on the yen markets. Besides, the US pending home sales data and Fedspeaks could also have some bearing on the major.

USD/JPY Technical levels to watch             

The major finds immediate resistance at 111.40/50 (10-DMA/ psychological levels). A break above the last, the major could test 111.91 (classic R2/ Fib R3) and 112.79 (20-DMA) beyond the last. While to the downside, the immediate support is seen at 110.98/84 (5-DMA/ daily pivot) next at 110.50/46 (classic S1) and below that at 110.18/00 (Fib S2/ zero figure).