USD/JPY corrects lower in tandem with DXY, T-yields

The corrective mode seen in the US dollar picks-up pace over the last hour, in response to the retreat in the treasury yields across the curve, which in turn dragged USD/JPY further away from two-week tops reached previously at 114.59.  

The renewed uptick in the major also lost steam after the yen recovered some ground amid increased demand for safe-haven, following negative performance seen on the Asian equities, especially with the Nikkei 225 index moving further away from 15-month tops.

Meanwhile, the major shrugged-off mixed Japanese inflation data, with Japan National CPI Ex-Fresh Food (YoY) coming in at 0.3%, above expectations (0%) in January. Japan Tokyo CPI ex Fresh Food (YoY) came in at -0.3%, below expectations (-0.2%) in February.

The major will get influenced by the USD price-action, against the backdrop of rising Fed rate hike bets and strengthening US labour market, as investors gear up for another round of Fedspeaks, with Fed officials Evans, Powell, Yellen and Fischer up on the rostrum tonight.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 114.48/59 (daily & 2-week high). A break above the last, the major could test 114.97/115 (Feb 15 high/ psychological levels) and 115.18 (classic R2/ Fibonacci R3) beyond the last. While to the downside, the immediate support is seen at 113.80/79 (100 & 50-DMA) next at 113.57/50 (5-DMA/ zero figure) and below that at 113.18 (10-DMA).