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   “¢   Bulls once again struggled to make it through the 112.00 round figure mark.
   “¢   The latest USD upsurge failed to provide any meaningful bullish impetus.
   “¢   Declining US bond yields seemed to be the only factor exerting pressure.

The greenback held on the defensive against its Japanese counterpart, with the USD/JPY pair drifting back closer to over one-week lows set in the previous session.

The pair traded with modest losses for the fourth session in the previous five and seemed unimpressed by the latest leg of an upsurge in the US Dollar to the highest level since June 2017, rather took cues from the ongoing slide in the US Treasury bond yields.  

Even the overnight strong bullish move in the US equity markets, supported by upbeat earnings reports from Twitter/Coca Cola, which tends to undermine the Japanese Yen’s safe-haven demand, also did little to provide any meaningful impetus to the major.  

Traders also shrugged off Tuesday’s better than expected release of the US housing market data, showing that sales of new single-family homes jumped to a near 1-1/2 year high in March and eased concerns of an economic slowdown in the world’s biggest economy.

The downside, however, remained cushioned, at least for the time being, as investors still seemed reluctant to place any aggressive bets ahead of this week’s important US macro data – including the advance Q1 US GDP report, scheduled for release on Friday.

Technical levels to watch

Omkar Godbole, FXStreet’s own Analyst and Editor writes: “The weak follow-through to the defense of the ascending trendline seen in the Asian session yesterday has weakened the bullish case and shifted risk in favor of a drop below the previous day’s low of 111.65. Acceptance below that level would expose the recent bullish higher low of 110.84.”

“The bullish view put forward by both the rising trendline (higher lows) and the upside break of the bearish expanding channel seen on April 11 would be reinforced if the pair jumps above 112.17 in the next 24 hours. That could be followed by a rally to 113.00,” he added further.