USD/JPY attempts recovery in tandem with Nikkei, 114 eyed

The USD/JPY pair stalled its downslide and now attempts a minor-recovery, having found support near yesterday’s low of 113.73.

The major trimmed losses over the last hour, as the Japanese stocks moved-off lows amid a retreat in the yen, with markets now shifting their attention towards the Chinese trade data release, which will be reported shortly.

The major extended its overnight declines in early Asia as the yen regained footing, despite Japanese Q4 GDP miss, in response to the capital expenditure component of GDP having risen at the fastest rate in three years.

Looking ahead, the major will also take cues from a fresh set of US macro updates, including the ADP jobs report and revised nonfarm productivity data

USD/JPY Technical levels to watch 

The major finds immediate resistance at 114.20/24 (Classic R1/ Fib R2). A break above the last, the major could test 114.67/77/78 (classic R3/ Mar 3 high) and 114.97/115 (Feb 15 high/ psychological levels) beyond the last. While to the downside, the immediate support is seen at 113.59/54 (50 & 10-DMA) next at 113.06/113 (Feb 16 low/ zero figure) and below that at 112.75/71 (Feb 20 & Mar 1 low).