USD/JPY: better bid on Fed rate hike expectations, eyes

Currently, USD/JPY is trading at 113.29, down -0.09% on the day, having posted a daily high at 113.47 and low at 113.28.

US Equities: Dow & S&P close higher while Nasdaq drops

USD/JPY has been offered in the Tokyo open today, while major equity indexes in the U.S. closed mixed as the rise in energy, and financial stocks were countered by another drop in tech shares. 

USD/JPY has otherwise been in a broader bullish trend from 108.81 earlier in the month to 113.47 the recent high with a higher low in June compared to the YTD low of 108.12 with a resurgence in the dollar from Fed official's hawkish rhetoric. 

US data review: GDP Q2 tracker lowered - Nomura

For today, the combination of higher US rates & stocks as well as the Fed rate hike odds jumping on big ISM beat overnight, traders now have eyes on the 113.40 trend resistance as the next key hurdle.

USD/JPY levels

USDJPY: Bids look likely to emerge ahead of 113.00

From a technical point of view, Valeria Bednarik explained from the 4 hours chart it is showing that the price has broken above the 23.6% retracement of the latest bullish run at 112.90. "The price develops far above its 100 and 200 SMAs, with the shortest gaining traction above the largest. Technical indicators in the mentioned chart have lost upward strength, but consolidate near overbought levels, favoring additional gains as long as the price holds above the mentioned 112.90."