Despite yesterday's upbeat US monthly retail sales data and Empire State manufacturing index and the lack of movement in the treasuries the USD/JPY once again failed to make it through the 112.50-60. A weaker tone around equity markets supported the Japanese Yen's demand but Powell's first testimony could cause headline-driven distortions in price action.
The USD/JPY is correcting lower after failing to clear past the 112.85 level and holds onto its gains but it's running into some signs of exhaustion near the resistance. However, the pair still showing strength by trading sideways near highs confirming the bullish trend. A break above the 112.80 will lead towards 113.60.
Support: 111.75 111.40
Resistance: 112.80 113.60