USD/JPY bounces-off hourly 200-SMA

The bulls were rescued by renewed broad based USD demand, lifting USD/JPY from session lows of 117.50 levels.

USD/JPY awaits US data

The dollar-yen pair found fresh bids at hourly 200-SMA support of 117.50 levels, and from there attempts a tepid-bounce in a bid to retest daily tops reached previously at 117.60 levels.

The renewed uptick in the major is mainly driven by a resurgence of significant strength in the US dollar against its major peers. Moreover, USD/JPY also found support from an improved risk environment, with oil prices turning once again in positive territory. The USD/JPY pair is last seen exchanging hands at 117.62, recording a +0.18% gain on the day.

Markets also continue to digest unimpressive Japanese data, as attention now turns towards the US pending home sales data amid subdued trading activity in the markets.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 118 (round number). A break above the last, the major could test 118.43 (Dec 16 high) and 118.67 (10-month highs) beyond the last. While to the downside, the immediate support is seen at 117.37/36 (daily low/ 5-DMA) next at 117.14 (daily S1) and below that at 116.54 (20-DMA).