USD/JPY supported near 113.10 amid positive equities and higher T-yields

The USD/JPY pair managed to cut losses in the Asian session, stalling its retreat from seven-week highs reached at 113.47 in overnight trades.

USD/JPY rejected near 113.50

The Japanese yen recovers ground against its American rival so far this session, underpinned by the latest reports of North Korea launching ballistic missiles again, while slightly upbeat BOJ Tankan report on the inflation outlook in the coming months also rescued the JPY bulls from multi-week troughs.

However, the retreat remains restricted amid the latest upsurge seen in the US yields after Fed rate hike bets were bolstered by stronger US ISM manufacturing PMI report released a day before.

Moreover, positive tone seen in the Japanese equities, as most major Asian indices track their Wall Street counterpart higher, also keep the prices buoyed. Next of relevance for the major remains the BOJ’s core CPI data, while holiday-thinned trading is likely to extend ahead, with the US celebrates Independence Day today.

USD/JPY Technical levels                 

According to Valeria Bednarik, Chief Analyst at FXStreet, “Technical indicators in the mentioned chart have lost upward strength, but consolidate near overbought levels, favoring additional gains as long as the price holds above the mentioned 112.90. Support levels: 112.90 112.50 112.10 Resistance levels: 113.70 114.05 114.40.”