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USD/JPY: bullish tone strengthens, nears hourly 200-MA

The American dollar continued to find buyers in early US session, taking the USD/JPY pair higher to near hourly 200-MA located at 118.43 levels.

Eyes US data

The investors await the Chicago Fed National Activity Index, which will be followed by US Preliminary PMI manufacturing data release. In the meantime, the positive action in the US equity index futures is keeping the offered tone around safe haven JPY intact.

The spot currently trades around 113.35. Yen’s fall began in Asia following and gathered pace in Europe due to flight to risky assets.

USD/JPY Technical Levels

The immediate support is seen at 112.95 (hourly 50-MA), under which the pair could drop to 112.30 (Friday’s low). On the other hand, a break above 113.42 (hourly 200-MA) would open doors for a rally to 113.69 (5-DMA).

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