USD/JPY catches fresh bid tone in tandem with DXY

USD/JPY surpassed the 5-DMA resistance and rallied to daily highs at 112.80, before easing slightly to now trade near 112.65 region, still up +0.25% on the day.

USD/JPY eyes 113.00

The major regained poised and extended the recovery from just ahead of 112 handle, as the bulls closely tracked the fresh broad based rally witnessed in the US dollar, in response to a minor-recovery staged by the treasury yields across the curve.

Markets continue to cheer upbeat US growth data, as Trump is expected to inherit strengthening US economic recovery, while the data also confirmed a Dec Fed rate hike, providing fresh impetus to the USD bulls.

In the day ahead, the major will get influenced by persisting risk trends, especially in light of the OPEC meeting. While a host of US macro news will be published in the NA session, although the data is expected have limited impact on the spot.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 112.98 (Nov 23 high). A break above the last, the major could test 113.12 (Nov 28 high) and 113.30 (daily R1) beyond the last. While to the downside, the immediate support is seen at 112.06 (daily low) next at 111.52 (daily S1) and below that at 110.80 (Nov 23 low).