USD/JPY finds takers under 1-hour 200-MA, clocks fresh session high

The Dollar-Yen pair’s drop below 1-hour 200-MA level of 112.91 proved to be short lived as the spot jumped to a fresh session high of 113.45 levels. 

The greenback was offered in an initial response to Trump speech, which lacked policy specifics. However, markets seem to have taken heart from Trump’s optimistic tone and 1 trillion dollar infrastructure spending plan. 

With Trump speech out of the way, the focus is back on the Fed March rate hike bets, which have been boosted to 62% from 30%, courtesy of the hawkish talk from the Fed officials. 

Later in the day, personal spending and income report and core personal consumption expenditure figure would hit the wires. 

USD/JPY Technical Levels

A break above 113.73 (Feb 22 high) would expose 114.00 (zero figure), above which the spot could target 114.43 (50-DMA). On the other hand, a breakdown of support at 112.97 (10-DMA) could yield a sell-off to 112.72 (5-DMA) and 112.55 (Feb 23 low).