USD/JPY struggles to rise back above 114

USD/JPY witnessed a bullish opening on Monday and stormed it way through 114 handle, before running into offers near 114.20 to reverse the risk-on rally back below 114 levels.

The spot is now seen consolidating the Asian upmove, while the bulls struggle hard to regain 114 handle amid stalled broad based US dollar buying. The rally in the major was mainly driven by higher treasury yields, with investors taking advantage of a better risk environment, spurred by peaceful talks between Trump and Abe over the weekend.

While poor Japanese Q4 prelim GDP report added to the losses in the Yen, and kept USD/JPY well supported near 114 levels. The GDP figures arrived at 0.2% q/q vs. +0.3% expected.

Later today, the US docket remains data-empty, and hence, USD/JPY will take cues from the broader market sentiment. The spot was last seen exchanging hands at 113.91, up +0.63% on the day.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 114.17 (10-day high). A break above the last, the major could test 114.50 (round number) and 115.14 (Jan 30 high) beyond the last. While to the downside, the immediate support is seen at 113.78 (daily pivot) next at 113.31/25 (20 & 5-DMA) and below that at 112.86 (10-DMA).