USD/JPY slow and steady near 113.50

• USD/JPY back into 113.50 once again as the pair floats near the top.
• Broader-market risk sentiment appears to be hanging in the balance.

USD/JPY continues to step around 113.50 in early Wednesday action as the US Dollar sees steady lift against the Japanese Yen as a lack of high-impact data in the Pacific-Asia trading session, as well as a breather cycle in risk-off headlines is allowing investors the opportunity to step back out of the safe-haven Yen.

The Dollar-Yen pairing has spent most of the last three months caught between 112.00 and 114.00 as the major pairing gets constrained on the higher timeframes, and broader market flows sap the pair’s ability to catch a trend; despite this, the 50-day moving average continues to bolster the pair slightly, providing a key floor for overall action, but the long-term outlook for USD/JPY remains one of tightening resistance, with a familiar ceiling at 114.00 keeping the pair’s upside limited through the majority of 2017 and 2018.

USD/JPY Technical Levels