USD/JPY dumped to 114.00, Thursday’s low eyed?

The bears take a breather in late-Asia/ early Europe, allowing a minor consolidative mode in USD/JPY  just ahead of 114 handle, while awaiting fresh impetus for the next push lower.

The spot was last seen exchanging hands at fresh session lows of 113.95, stalling its recovery at daily pivot of 114.26. The spot is mainly driven by RO-RO trends, as risk-aversion remains the main theme so far this session amid re-emergence of hard-Brexit concerns, underpinning safe-haven bids for the yen.

While the major fails to take advantage of broad based US dollar strength amid higher treasury yields, as all eyes now remain on the UK PM May, as she called for a Hard-Brexit in her recent speeches. Also, a fresh batch of US macro news combined with Fedspeaks will also play a crucial role for shaping up next direction in the spot.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 114.58 (5-DMA). A break above the last, the major could test 115 (zero figure) and 115.50 (psychological levels) beyond the last. While to the downside, the immediate support is seen at 113.73 (Jan 12 low) next at 113.50 (key support) and below that at 113 (round number).