USD/JPY bounces-off 50-DMA, back towards 110 handle

The selling spiral seen in the USD/JPY in early Asia stalled near 50-DMA, and the major swung back higher as risk sentiment recovers amid stabilizing oil prices.

USD/JPY looks to regain 5-DMA at 109.82

The yen reverses its upward rally versus the American dollar in the mid-Asian trades, now pushing USD/JPY back towards the upper band of 109 handle. The Japanese currency witnessed a big bid earlier on the day, following Japanese official Asakawa comments, citing, intervention will remain in tool box as the G7 meeting got underway. At the time of writing, USD/JPY rebounds to 109.74, still down -0.41% on the day.

Moreover, a renewed bout of buying interest seen around the Japanese stocks also aided the recovery in the USD/JPY pair. The Nikkei 225 index is now up +0.49% versus +0.25% seen previously. However, further upside looks difficult as the US dollar extends the previous drop versus its major competitors. Meanwhile, the USD index now drops -0.25% to 95.16 levels.

Data-wise, the major is likely to get influenced by the US durable goods, jobless claims and pending home sales data due later in the NA session, while a couple of Fedspeaks will also remain in focus.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 110.15/25 (Daily pivot & May 23 High). A break above the last, the major could test 110.50 (psychological levels). While to the downside, the immediate support is seen at 109.49/42 (50-DMA/ daily low) and below that at 109 (round number).