USD/JPY: bulls looking for a break of 112 resistance

Currently, USD/JPY is trading at 111.93, up 0.07% on the day, having posted a daily high at 111.97 and low at 111.82.

USD/JPY has been a choppy open in a tight ten pip range but maintains the better bid tone from overnight's resurgence in the greenback. The US dollar was sold off on the back of the disappointments in the US data (Q1 GDP expectations will be trimmed on that) but was then in demand again across the board and despite lower yields. The DXY recovered two hours later in the US session to end the day up 0.2%.

"US 10yr Treasury yields fell from 2.16% to 2.12%, while 2yr yields fell from 1.35% to 1.33%. Fed fund futures continued to price the chance of a December rate hike at around 45%," noted analysts at Westpac.

USD/JPY levels

The 4 hours chart presents a positive tone, according to Valeria Bednarik, chief analyst at FXStreet. "Technical indicators have managed to bounce after nearing their mid-lines, whilst the price remains above its 100 and 200 SMAs, both lacking directional strength. Nevertheless, the pair needs to break above 112.00, the 38.2% retracement of the latest bullish run to be able to post a more sustainable advance."