USD/JPY rejected near 10-DMA as Trump-led USD recovery falters

Every upside attempt in USD/JPY faces rejection near 10-DMA barrier located at 112.81, keeping the pair largely subdued near the mid-point of 112 handle so far this session.

The JPY bulls remain in charge as better-than expected Japanese retail sales report overshadowed disappointing industrial output data, which fell for the first time in six months last month.

Moreover, stalled recovery in the US dollar against most of its main rivals also keeps a lid on the rallies. The spot is last seen exchanging hands at 112.56, reverting towards daily lows struck previously at 112.45.

Looking ahead, the USD dynamics and risk trends will play the key determinants for USD/JPY price-action, as all eyes now await the US prelim GDP figures and Trump’s interview ahead of his congressional address due later on Tuesday.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 112.81 (10-DMA). A break above the last, the major could test 113 (zero figure) and 113.49 (100-DMA) beyond the last. While to the downside, the immediate support is seen at 112.10 (daily S1) next at 111.70 (Feb 9 low) and below that at 111.50 (round figure).