USD/JPY finds support ahead of 113.00

• USD/JPY finds support above 113.0
• USD on the back foot amid thin liquidity
• USD/JPY technicals show neutral conditions

USD/JPY has found support ahead of the 113.00 area, last trading at 113.20, with extreme thin conditions being the norm. 

US Dollar weakness main theme

Fundamentally, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The fact that the pair closed marginally higher comes as a surprise, considering persistent dollar's weakness and another batch of upbeat macroeconomic releases coming from Japan at the beginning of the day. Housing starts fell by less than expected during November, printing -0.4% against the previous -4.8% and the expected -2.5%  while construction orders rose by 20.5%, from previous 6.7%, both yearly basis."

USD/JPY technicals

Valeria adds: "The pair maintains a neutral stance in the short-term, as in the 4 hours chart, technical indicators remain flat in neutral territory, while the pair continues developing above its 100 and 200 SMAs, which continue losing upward strength. As mentioned in previous updates, the immediate support is the 112.90 level, with declines limited as long as the pair remains above it."