USD/JPY: bulls with cheaper dollars eye through 114 handle

Currently, USD/JPY is trading at 113.96, up 0.04% on the day, having posted a daily high at 114.14 and low at 113.56.

USD/JPY has picked up a bid in the US session after a risk-off start to the week with North Korea firing four ballistic missiles into the sea over the weekend, putting Japan at the highest state of security alertness driving the JPY higher on safe-haven demand.  The risk-off mood continued throughout European trade and equities started off on the back foot, driving more flows to the yen until USD/JPY started to look cheap at the lows. 

Economic outlook for the United States of America - Nomura

USD/JPY levels

USD/JPY short-term technicals are neutral/bearish according to analysts at Scotiabank who noted that USD/JPY fell sharply in the early part of the overnight session, saying that this was leaving some bearish technical formations on the short-term charts (outside range signal on the 6-hour candle), resulting in another firm rejection of the upper 114 area after the mid-February tumble. "The USD is finding some interest at daily “cloud” chart support at 113.80, however, and intraday price signals suggest a base may be forming. The USD may steady or firm modestly to 114.20/40 from here."