USD/JPY slightly offered in Tokyo, eyes on downside and April highs 112.02?

Currently, USD/JPY is trading at 113.14, down -0.04% on the day, having posted a daily high at 113.38 and low at 113.09.

US dollar index erases daily gains after FOMC statement

USD/JPY looks set for a test lower with 112 on the radar on the daily sticks, although a few days of support has held up the momentum and the price is in consolidation above the mid-point of the 112 handle. the data overnight also supported the dollar with the ADP report and manufacturing jobs on the rise, as a positive prelude for Friday's key nonfarm payrolls events as this week's showdown after a non-event in the FOMC. "US 10yr treasury yields initially rose after the strong data outturns, from 2.46% to 2.51%, but fell after the FOMC statement to 2.47%. 2yr yields similarly rose from 1.21% to 1.26% before fully retracing," noted analysts at Westpac.

USD/JPY levels

Analysts at Commerzbank noted that USD/JPY failed to regain 115.34 (imoku 2) to alleviate downside pressure and has retested support, explaining that the pair has sold off to the 38.2% retracement at 111.98 area and the 112.02 April high. "This is stronger support and should hold the initial test. We note that the recent move lower continues to indicate that this is the end of the corrective move. As a consequence is side lined very near term and we suspect will again attempt to recover. Key short term resistance is the 16-month resistance line at 118.26."