USD/JPY extends the bullish break to 10-DMA

The US dollar picks-up significant strength versus its main rivals over the last hours, allowing an extension of the rally in USD/JPY near the mid-point of 113 handle, where 10-DMA intersects.

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The spot is last seen exchanging hands around 113.50, hovering close to session tops reached at 113.56 some minutes ago. The major extends its rebound into a second day today, mainly driven by a better risk environment amid higher Japanese equities and treasury yields, which lifted the bids around the greenback.

Meanwhile, markets paid little heed to better-than expected Japanese manufacturing PMI index published by Nikkei, which arrived at 53.5 versus 52.7. Attention turns towards the US docket, with the flash manufacturing and services PMI reports on the cards. Besides, Fed official Harker’s speech will also hog the limelight.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 113.84 (daily R3). A break above the last, the major could test 114 (round figure) and 114.36 (Feb 16 high) beyond the last. While to the downside, the immediate support is seen at 112.75 (Feb 20 low) next at 112.58 (Feb 17 low) and below that at 112.03 (Feb 2 low).