• A global wave of risk-aversion trade, triggered by mounting Italian budget worries, has started weighing on JPY pairs in general.
• The pair reversed early uptick to YTD tops and was further dragged down by the ongoing slide in the US Treasury bond yields.
• The pair encountered resistance near Dec. swing highs and the risk-off mood prompted some long unwinding amid overbought conditions.
• The upside momentum still seems very much intact unless market mood deteriorates further and the pair drops below the 113.30 area.
USD/JPY 1-hourly chart
Spot Rate: 113.41
Daily High: 113.64
Trend: Bullish above 113.30 zone
R1: 113.64 (YTD tops set earlier today)
R2: 113.75 (Dec. 2017 swing high)
R3: 114.06 (R3 daily pivot-point)
S1: 113.15 (horizontal zone)
S2: 113.00 (round figure mark)
S3: 112.79 (S1 daily pivot-point)