USD/JPY Price Analysis: Clings to the 115.00 mark amid a risk-off market mood

• On Tuesday, the USD/JPY reclaims the 115.00 mark amid a risk-off market mood in the FX market.
• USD/JPY Technical Outlook: Neutral upward biased, as long as it remains above 115.06.

As the Asian Pacific sesión begins, following a choppy trading North American session, the USD/JPY barely gains some 0.05%, trading at 115.06 at press time. Market conditions remain downbeat in the equity markets. In the FX space, risk-sensitive currencies, like the NZD, the AUD, and the GBP, were the gainers. Contrarily, the Japanese yen finished on the wrong foot but trimmed some of its earlier losses near Wall Street’s close.

The US 10-year Treasury yield rise one and a half basis points sits at 1.944%, a tailwind for the pair due to its positive correlation with the USD/JPY.

On Tuesday in the Asian session, the USD/JPY remained confined to the 114.50-80 region before breaking the range, rallying above the 115.00 mark.

USD/JPY Price Forecast: Technical outlook

The USD/JPY reclaimed the 50-day moving average at 114.84, exacerbating the upward move above 115.00. The USD/JPY remains neutral-upward biased in the near term but faces resistance on the January 18 daily high at 115.06. It is worth noting that the Relative Strength Index (RSI) at 50 is almost flat, suggesting the USD/JPY might consolidate before resuming the uptrend.

USD/JPY’s first support level would be the abovementioned 50-DMA at 115.06. Breach of the latter would expose last year’s November 24 daily high at 115.52, followed by the 116.00 mark and the January 4 cycle high at 116.35.