USD/JPY slammed to 112.15, risk-off returns ahead of NFP

The overnight recovery in USD/JPY lost legs near 112.65 region, as the bears returned in full force and knocked-off the rate below 5-DMA support located at 112.26.

A fresh round of aggressive selling in the major can be mainly attributed to intensifying risk-off moods, after oil prices dived deeper into the red zone, which sent the Asian equities further into losses.

Moreover, latest comments from the BOJ Chief Kuroda also offered fresh impetus to the Japanese currency, collaborating to the sell-off in USD/JPY. BOJ Kuroda said that he is confident that ‘wage and prices would start to accelerate in coming months and years’.

Markets continue to digest headlines from the BOJ Governor Kuroda, as attention now turns towards the crucial US NFP data due later in the NA session.

USD/JPY Technical levels                 

A break above 112.45 (200-DMA) would expose 112.60 (daily pivot) and 113 (round figure). On the other hand, a breach of support at 112 (key support) could yield a test of 111.76 (10-DMA) and 111.30 (50-DMA).