USD/JPY: Upside remains capped near 111.15, US data, Fed eyed

The bears are seen guarding 111.15 barrier, rejecting USD/JPY’s every attempt to take-out the last, despite renewed broad based US dollar strength.

USD/JPY bounces-off low

The dollar-yen pair founds fresh support once again near daily pivot placed at 110.90, prompting another run above 111 handle, only to meet fresh supply near 111.15 region to now trade around 111.05, down -0.10% so far.

The major remains under pressure, despite a broadly higher buck, as cautious trading seen in the European stocks and commodities underpins the demand for safe-haven yen.  Nervousness seeps into markets as we progress towards the release of the UK Autumn Forecast Statement, which is expected to trigger volatility across the fx board

While US macro news and the FOMC minutes will also grab a lot of eyeballs, as it will bring markets one step closer to the Dec Fed rate hike expectations.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 111.46 (May high). A break above the last, the major could test 111.60 (daily R1) and 112 (zero figure) beyond the last. While to the downside, the immediate support is seen at 110.86 (daily low) next at 110.23 (Nov 22 low) and below that at 110 (key support).

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