USD/JPY: Bulls take-out 113 amid strengthening T-yields

The offered tone behind the Japanese currency keeps growing bigger as we head towards the mid-European session, driving USD/JPY back above 113 handle.

USD/JPY eyes US ADP jobs report

USD/JPY’s recovery from 112 handle gains further traction in the European session, after higher oil prices-driven renewed risk-on wave lifted the demand for the treasury yields at the expense of the safe-haven yen.

Oil prices rally almost 5% amid renewed expectations of the proposed OPEC output cut deal to be reached, especially after optimistic remarks from the OPEC delegates from Iran and Iraq OPEC.

Looking ahead, oil-driven market sentiment will continue to influence the major ahead of the US ADP jobs report and Fedspeaks due later in the NA session.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 113.30 (daily R1). A break above the last, the major could test 113.50 (psychological levels) and 113.91 (multi-month tops) beyond the last. While to the downside, the immediate support is seen at 112.06 (daily low) next at 111.52 (daily S1) and below that at 110.80 (Nov 23 low).