USD/JPY is back above 113.00 levels

The USD/JPY continued to recover from the North American session low of 112.08, now trading just above 113.00 levels.

Eyes US data, Fed decision

Dollar traders await the key data releases - US ADP and ISM manufacturing - ahead of the Fed rate decision.

The ADP is expected to show the pace of job growth in the private sector ticked up in January. Meanwhile, the ISM is expected to show a modest improvement in the activity.

Later in the day, the Fed is seen keeping key rates unchanged. Markets will scan the policy statement for comments regarding the strong US dollar.

USD/JPY Technical Levels

The spot clocked a session high of 113.15 and was last seen trading around 113.05. Failure to hold above 113.00 (zero figure) could yield a re-test of support at 112.64 (session low) under which the losses could be extended to 112.08 (previous day’s low). On the higher side, breach of hurdle at 113.45 (Jan 30 low) would expose 113.83 (5-DMA + 10-DMA). The next major hurdle is seen at 115.00 (50-DMA).