USD/JPY wipes-out gains in tandem with Nikkei, 110 eyed?

A sudden selling interest gripped the USD/JPY pair towards the late-Asian session, as the yen regained lost footing somewhat as the Japanese stocks fell back in the red.

USD/JPY: A retest of 110 inevitable

The JPY bulls fought back control amid a sudden turnaround in the risk conditions as the Japanese indices halted the rebound and returned in the negative territory, triggered a renewed bout of risk-aversion across the financial markets. At the time of writing, USD/JPY peeks into the red and hovers around 110.30, while the Nikkei 225 loses -0.15% to trade at 15,709.

Moreover, the modest recovery seen in the greenback against its major peers, also loses steam over the last hour, and hence, adds to the negative pressure around USD/JPY. Meanwhile, markets will continue to track the broader market sentiment in the day ahead, while the main focus remains on the FOMC minutes due out in the NY session.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 111/111.08 (5-DMA). A break above the last, the major could test 111.50/53 (1h 100-SMA). While to the downside, the immediate support is seen at 110/109.95 (Apr 5 Low) and below that at 109.50 (Oct 2014 Levels).