USD/JPY retakes 113.00 despite uptick in Japanese bond yields

The offered tone around Yen gathered pace, pushing the USD/JPY back above 113.00 handle despite the uptick in the Japanese government bond yields.

Support at 112.50 comes into play

The spot once again turned higher from the critical support of 112.50. Earlier today, the Bank of Japan failed to impress the markets with the bond buying effort. Consequently, the 10-year Japanese bond yield strengthened four basis points to 0.155%. The resulting narrowing of the US-Japan 10-yr yield spread pushed the USD/JPY pair to a session low of 112.50. 

The 10-year yield still trades around 0.14%, despite which the pair rose to a high of 113.23. As per the latest report, the BOJ has offered to buy 5-10 year bonds in unlimited amount. However, the yields remain resilient. 

USD/JPY Technical Levels

The spot was last seen trading around 113.10. A break below 112.52 (Jan 24 low) would open doors for a sell-off to 112.00 (zero figure), under which a major support is seen directly at 111.36 (Nov 28 low). On the higher side, 113.23 (session high) could offer resistance, which, if breached would shift risk in favor of a rise to 113.95 (Feb 1 high) and to 114.24 (Jan 11 low).