•Today morning USD/JPY broke the minor resistance at 112.75 and hit an intraday high at 112.93. The pair is currently trading around 112.84.
•The widening yield spread [US-Japan 10-year bond] signals the Dollar-Yen pair is likely to remain upbeat and could break above 113.00 levels. Overall stance for the pair is bullish as it keeps holding above the 200 DMA.
•We expect a retest of the 112.75-70 area before the next up move.
•Support: 112.70, 112.40 & 112.00 [200 DMA]
•Resistance levels - 112.95 [78.6% Fib retrace of 114.49 to 107.31], 113.50 & 114
•Recommendation: Buy on dips around 112.70 with SL below: 112.40 and TP: 112.90-113.00.