USD/JPY supply capping recovery near 5-DMA

USD/JPY bounced-off lows reached just ahead of 112 handle, although the recovery remains capped below 5-DMA barrier located at 112.47, as mixed market sentiment continues to weigh on the major.

USD/JPY: Daily pivot – a tough nut to crack on the upside

The major pauses its recovery mode and now consolidates hovers around 112.30 levels amid subdued trading activity seen behind the greenback and treasury yields, as a cautious tone prevails in the market ahead of OPEC’s output decision due later today.

The dollar-yen pair managed to find support near 112 handle and recovered ground somewhat, mainly in response to a fresh bid tone seen behind the Japanese stocks, with the Nikkei 225 index moving-off lows and hence, providing some respite to the bulls.

Moreover, yesterday’s upbeat US GDP revision also continues to keep any downside attempt restricted, as focus now shifts towards a fresh batch of US macro releases, Fed speaks and the all-important OPEC meeting.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 112.44/47 (daily pivot/ 5-DMA). A break above the last, the major could test 112.70 (1h 50-SMA) and 113.12 (Nov 28 high) beyond the last. While to the downside, the immediate support is seen at 112.06 (daily low) next at 111.52 (daily S1) and below that at 110.80 (Nov 23 low).