USD/JPY consolidates the downside below 115, Fed/BOJ eyed

The offered tone seen behind the greenback versus its major rivals so far this session, keeps the USD/JPY pair under pressure, with the bears now looking to extend the corrective slide amid subdued US treasury yields, after having failed near 115 handle.

Investors take the excuse of a mixed US jobs report and continue selling-off the buck amid a fresh bout of profit-taking heading into a big week ahead, packed with central banking action.

On Friday, the major eroded almost 100 pips and slumped from seven-week tops after markets adopted the ‘Sell the fact’ strategy, following a solid jump seen in the US payrolls numbers.

All eyes now remain on Tuesday’s Chinese data dump and Wednesday’s FOMC decision for further impetus on the dollar-yen pair. Meanwhile, the LMCI data due out from the US will remain in focus tonight.

USD/JPY Technical levels to watch             

The major finds immediate resistance at 115.49/50 (classic R2/ psychological levels). A break above the last, the major could test 115.62 (Jan 19 high) and 115.95/116 (classic R3/ zero figure) beyond the last. While to the downside, the immediate support is seen at 114.37 (100-DMA/ 10-DMA) next at 113.64/57 (20 & 10-DMA) and below that at 113.06/113 (Feb 16 low/ zero figure).