USD/JPY runs into resistances near 113.90, drops to 1hr 20-SMA
By FXStreet The major ran into resistances near 113.90 region post-China open and now moves further away from 114 handle as the yen bulls jumped back on the bids as the Japanese stocks rally loses steam.
USD/JPY comes down to test hourly 20-SMA at 113.75
The dollar-yen pair extended its retreat from 114 levels and made an attempt to daily lows reached at 113.65 in opening trades as bulls take a breather amid a pause in the Asian markets rally, with the Japanese stocks paring earlier gains. At the time of writing, USD/JPY trades modestly flat at 113.80, recovering from a dip to 113.72 hit over the last hour.
Markets also continue to absorb the latest data out of Japan ahead of the BOJ policy decision due tomorrow. Core machinery jumped 15.0% m/m in January, coming in much better than the 2.0% increase forecast and compared to the 4.2% rise in orders in December.
Meanwhile, the broader markets sentiment will continue to drive the USD/JPY price action in absence of fresh economic releases in the day ahead.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 114 (daily high/ psychological levels). A break above the last, the major could test …read more
Source:: FX Street
