USD/JPY hits fresh lows in tandem with DXY, 113.50 eyed

The bears are back in control during late-Asia, sending USD/JPY back below 114 handle amid aggressive USD selling seen across the board over the last hour.

The spot was last seen exchanging hands at 113.83, hovering close to session lows struck at 113.78 last hour. The major keeps the offered tone intact this session, with any upside attempt above 114 handle sold-off into broad based US dollar weakness and persistent risk-off trades, as markets flock to the safe-haven yen amid Brexit-related anxiety ahead of the UK PM May’s speech.

While renewed weakness in the US treasury yields also highlights that risk-aversion remains in full swing, also as the Nikkei 225 index drops over 1%. Nothing of note for the major in terms of economic events in the day ahead, and hence, focus remains on the UK PM May’s Brexit speech and Fedspeaks due later on Tuesday.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 114.35 (5-DMA). A break above the last, the major could test 115 (zero figure) and 115.50 (psychological levels) beyond the last. While to the downside, the immediate support is seen at 113.50 (key support) next at 113.23 daily S2) and below that at 113 (round number).