USD/JPY eyes 113 amid resurgent Yen demand

Concerns surrounding the Trump’s administration resurfaced in the Asian hours, after headlines hit the wires, citing the resignation of the US National Security Adviser Flynn over his alleged links with Russia. Subsequently, risk-off sentiment intensified, with investors looking to park their funds in safe-havens such as the yen, which knocked-off the USD/JPY pair to daily lows of 113.27.

The spot is last seen exchanging hands around 113.35, hovering within a striking distance of daily troughs. The major has finally closed the bullish opening gap witnessed a day before, with the bears now awaiting fresh incentives from the US PPI data and Fed Chair Yellen’s testimony for next direction.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 114.17 (10-day high). A break above the last, the major could test 114.50 (round number) and 115.14 (Jan 30 high) beyond the last. While to the downside, the immediate support is seen at 113 (round figure) next at 112.82 (daily S2) and below that at 112.44 (100-DMA).