USD/JPY recovers in tandem with Nikkei, 111 back on sight?

Fresh bids emerged near 110.60 region over the last hour, allowing a tepid-bounce in USD/JPY from two-day troughs, in a bid to regain 111 handle.

The major tracks the recovery in the Japanese stocks, after the benchmark Nikkei 225 index moved away from lows, following the Japanese authorities’ denial to get involved in the Toshiba's chip business sale. The Nikkei trades at 18,715, recovering from 18,675 lows, still down -0.40% on the day.

Also, renewed buying interest seen around the greenback against its main rivals, despite negative treasury yields across the horizon, aids the reversal in USD/JPY from lows. The USD index now flirts with 101 mark, having found fresh support at 100.85.

Meanwhile, markets digest Yellen’s overnight comments and Trump headlines, which cited that the US President Trump held phone calls over Syria with the UK PM May and Merkel, while attention shifts towards the US JOLTS job openings data and FOMC member Kashkari’s speech due later today.

USD/JPY Technical levels to watch             

The major finds immediate resistance at 110.97/99 (5 & 10-DMA). A break above the last, the major could test 111.42 (classic & Fib R1) and 111.97/112 (Mar 30 high/ psychological levels) beyond the last. While to the downside, the immediate support is seen at 110.51/50 (Apr 5 low/ psychological levels) next at 110 (zero figure) and below that at 109.84 (200-DMA).