USD/JPY sees a minor-correction from 10-month tops

The USD/JPY pair is now reversing a part of intraday gains, on the back of profit-taking after the bulls ran into resistance at fresh multi-month tops.

USD/JPY: All about USD, T-yields and Oil

The dollar-yen pair extended its bullish run into Asia and rallied to fresh ten-month highs at 114.83, before running into fresh offers at Tokyo-open, as the Japanese traders resorted to profit-taking after the recent upsurge, heading into the highly-influential US payrolls data due out tomorrow. The major is last seen changing hands at fresh session lows of 114.20, down -0.20% on the day.

From a wider perspective, the spot is on a roll higher, extending its upmove into a third-consecutive, as tighter pace of Fed rate hikes for future and rising inflation expectations on Trump’s presidency and fiscal spending pushes the treasury yields higher across the curve, in turn bolstering demand for  the US currency.

Markets now look forwards to the US macro releases due later in the NA session, while improved sentiment amid higher oil prices, will continue to underpin the USD/JPY pair.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 114.50 (psychological levels). A break above the last, the major could test 114.83 (10-month high) and 115 (zero figure) beyond the last. While to the downside, the immediate support is seen at 114 (round number) next at 113.68 (daily pivot) and below that at 113.13 (5-DMA).