USD/JPY bounces off lows, back near 113.50

The greenback is weaker across the board on Thursday, with USD/JPY navigating the mid-113.00s after testing lows near 113.20 in early trade.

USD/JPY upside capped near 115.00

The pair is losing ground for the second consecutive session so far against a backdrop of a persistent offered bias around the US dollar.

Spot, however, keeps navigating the upper end of the recent range following the strong up move seen in November, although a break above the key handle at 115.00 the figure still remains elusive, acting as a tough resistance for the time being.

In the meantime, the pair stays well correlated to the performance of the yields of the US 10-year benchmark, while JPY speculative positioning has become net short for the first time this year during the week ended on November 29 as shown by the latest CFTC report.

Data wise, US Initial Claims are only due later in the day although the ECB meeting during the European afternoon is poised to drive the sentiment in the global markets today.

USD/JPY levels to consider

As of writing the pair is losing 0.11% at 113.52 facing the immediate support at 112.84 (low Dec.5) ahead of 111.85 (20-day sma) and then 111.32 (low Nov.28). On the upside, a surpass of 114.83 (high Dec.1) would open the door to 114.89 (high Feb.14) and finally 116.86 (78.6% Fibo of the 2016 drop).