USD/JPY recovery remains capped below hourly 200-SMA

By FXStreet The bulls appear to have given up in the Asian trades this Friday, after having several attempts to break above the stiff resistance placed just shy of hourly 200-SMA at 113.40.

USD/JPY supported at 113

The dollar-yen pair is still licking the post-ECB wound and now struggles to extend its recovery mode further beyond 113.35-40 zone as the subdued trading on the Asian markets continue to underpin the safe-haven demand for the yen. At the time of writing, USD/JPY trades muted around 113.20, while Japan’s Nikkei drops -0.90% to 16,705 points.

The major is attempting a recovery from ECB induced lows reached Thursday at 112.63 after the greenback slumped to fresh four-week lows against its major peers.

Meanwhile, the yen pays little heed to the downbeat Japan manufacturing index and remains better bid amid mild risk-averse conditions this session. Later today, nothing of note for the major except for the US import prices data, which is expected to have limited impact on the prices.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 113.48/50 (Mar 9 high/ psychological levels). A break above the last, the major could test 114 (round number). While to the downside, the immediate support …read more

Source:: FX Street