USD/JPY comes down to test daily pivot

The USD/JPY pair is seen extending its retreat from near 117.50 levels, with the bulls trying hard to defend bids as the rate meanders near session lows.

USD/JPY eases amidst mixed markets

The dollar-yen pair trims gains and heads for a test of next support located at the daily pivot of 117.15, as demand for the safe-havens such as gold, yen etc. is on the rise amid cautious tone prevalent in the markets. Most traders refrain from creating fresh positions across financial markets ahead of pre-New Year holidays light trading.

Further, the yen markets appear to have moved past weaker Japanese CPI report, while renewed weakness in the US dollar versus its major rivals collaborates to the latest leg lower in the spot. The USD/JPY pair is last seen exchanging hands at 117.22, testing session lows of 117.20, still up +0.12% on the day.

Next of relevance for the major remains the US consumer confidence and S&P/CS Composite-20 HPI y/y, which will reported in the NY session. 

USD/JPY Technical levels to watch 

The major finds immediate resistance at 117.67 (Dec 23 high). 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 117.15 (daily pivot) next at 116.72 (daily S2) and below that at 116.35 (20-DMA).