USD/JPY - bullish move stalls near 23.6% fib of two-day drop

The rebound in the USD/JPY pair from the low of 113.07 appears to have stalled near 113.52, which is the 23.6% fib retracement of the drop from 114.96 (Feb 15 high) to 113.07 (previous day’s low).

Offered near 50% fib

The bullish move seen in the first half of the week ran out of steam near 115.13 (50% of 118.66-111.60) levels, following which the pair made its way back to 113.00 levels.

The retreat from the high of 115.00 is quite surprising given the strong US CPI and retail sales. Furthermore, Yellen warned against falling behind the curve, but that failed to keep the dollar buoyed as well.  Moreover, the US 10-year treasury yield failed again to sustain above 2.5%.

The data calendar is thin; hence the spot remains at the mercy of the overall market sentiment.

USD/JPY Technical Levels

A breakdown of support at 113.31 (1-hour 10-MA) would open doors for 113.00 (zero figure), under which the losses could be extended to 112.52 (January 24 low). On the other hand, a break above 113.52 (23.6% of 114.96-113.07) would expose resistance at 113.79 (38.2% fib) and 114.00 (zero levels).