“¢ Easing Italian debt fears prompt some risk-on trade and weigh on JPY.
“¢ Goodish pickup in the US bond yields remains supportive of the up-move.
“¢ Traders now eye US ADP report and ISM services PMI for fresh impetus.
The USD/JPY pair caught some fresh bids on Wednesday and is currently placed at the top end of its Asian session trading range, around the 113.75-80 region.
A combination of supporting factors helped the pair to regain positive traction on Wednesday and recover a part of the previous session’s corrective slide from YTD tops.
Italian debt fears report that Italy will cut its budget deficit at a faster pace than expected, which helped boost investors’ risk-appetite and weighed on the Japanese Yen’s safe-haven status.
Meanwhile, bulls seemed to have largely shrugged off a weaker tone surrounding the US Dollar and rather tracked a goodish pickup in the US Treasury bond yields.
It would now be interesting to see if the pair is able to build on the positive momentum or continues with its struggle to make it through the 114.00 handle as market participants now look forward to the US macro releases for some fresh impetus.
Today’s US economic docket highlights the release of the ADP report on private sector employment, which followed by the ISM non-manufacturing PMI will be looked upon for some meaningful trading opportunities later during the early North-American session.
Technical levels to watch
The 114.00 handle might continue to act as an immediate resistance, above which the pair is likely to accelerate the up-move towards 114.40 intermediate hurdle en-route the 114.75-80 supply zone.
On the flip side, the 113.50 region now seems to have emerged as an immediate support, which if broken might prompt some additional long-unwinding trade and drag the pair further towards the 113.00 handle.
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