USD/JPY spikes to fresh session peak beyond 113.60 level

The USD/JPY pair accelerated the recovery move from 113.00 neighborhood and has now jumped to fresh session peak above 113.60 level. 

The prevalent risk-on mood, as depicted by buoyant sentiment surrounding equity markets, supported the pair's initial leg of bounce from lower level. This coupled with a modest greenback recovery, with the key US Dollar Index off 7-week lows, further collaborated to the pair's sharp up-move in the past hour or so.

Meanwhile, persistent fears over President Donald Trump’s protectionist stance might hinder any sharp US Dollar appreciation and might continue to underpin the Japanese Yen's safe-haven appeal. 

Later during NA session, a slew of second-tier US macro releases might help traders to grab some short-term trading opportunities.

Technical levels to watch

Immediate resistance is pegged near 113.80 level and is closely followed by 114.00 round figure mark. On a sustained move above 114.00 handle, the pair is likely to attempt a move towards 50-day SMA hurdle near 114.70 region. 

On the downside, weakness below 113.25 level might continue to find support at 113.00 round figure mark below which the pair seems to head back towards multi-week lows support near 112.60-55 zone before eventually dropping to test 112.00 round figure mark.