USD/JPY fails to resist above 112.00 on US Healthcare vote failure

The USD/JPY pair is seen meandering near daily lows reached near 111.85 levels on the latest US political headlines, having failed to sustain the ongoing recovery-mode above 112 handle.

The spot is testing the bulls’ commitment after headlines hit the wires, via Reuters, citing that the US Senate Republican plan to repeal and replace Obamacare has failed to get votes needed for approval.

Moreover, comments delivered by the BOJ Deputy Governor Nakaso also offers some support to the Yen bulls. BOJ’s Nakaso sounded optimistic on the inflation outlook, saying that Inflation expectations are expected to rise and CPI to increase toward 2%.

However, the retreat remains restricted amid risk-on market profile, characterized by rallying Asian equities amid higher oil prices.

Meanwhile, attention now remains on the Fed policy outcome due later today for fresh direction on Treasury yields, eventually impacting USD/JPY.

USD/JPY Technical levels                 

To the topside, a daily close above 5-DMA at 112 would shift risk in favor of a re-test of 112.62/64 levels (daily pivot/ 20-DMA) beyond which 112.87 (200-DMA) would be back on sight. A break below 111.42 (5-DMA) would open doors for 111 (zero figure). A break lower would yield a test of 110.50 (psychological levels).