USD/JPY fails to sustain the bounce above 113.00

The USD/JPY pair tracks a minor-recovery seen in the US dollar versus its main competitors, although reverses from daily tops amid moderate risk-aversion prevalent across the financial markets.

The spot was last seen exchanging hands at 112.95, retreating from daily highs reached at 113.14, still up +0.20% so far. The recovery in the major lost legs as market continues to weigh the USD jawboning from the US Treasury Secretary nominee Steven Mnuchin. U.S. Treasury Mnuchin: "Excessively strong" USD may be negative in the short term

Moreover, markets also digest reports of Trump’s decision of the US withdrawal from the TPP deal, keeping the bulls on a cautious mode. While safe-haven bids for the yen remains underpinned somewhat in wake of looming uncertainties over Trump’s policies and fiscal spending plans.

Besides upbeat Japanese manufacturing data also offers support to yen bulls. Japan’s Nikkei Manufacturing PMI for Jan arrived at 52.8 versus 52.4 prior.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 113.75 (5-DMA). A break above the last, the major could test 113.92 (10-DMA) and 114.50 (psychological levels) beyond the last. While to the downside, the immediate support is seen at 112.53(weekly low) next at 112.09 (daily S1) and below that at 111.58 (Nov 29 low).