USD/JPY testing the downside of the 114 handle, can it hold?

• USD/JPY testing the wits of the bulls at 114 the figure.
• Technical studies still bid on the 4-hr charts, eyes for a break of 114.40.

USD/JPY was a grind to the upside overnight from 113.80 to 114.20, while equities followed the DAX's lead on Wednesday and weighed on both the safe-haven yen and Swiss franc as the day’s underperformers.

Forex today: a volatile session with plenty to digest, DXY up +0.3%

USD/JPY sliding in Tokyo

However, in the Tokyo open, the yen is harder and taking the dollar down to challenge the bull's commitments at 144 the figure. Currently, USD/JPY is trading at 114.04, down -0.13% on the day, having posted a daily high at 114.23 and low at 113.99.

For rates, the US 10yr treasury yields fell from 2.39% to 2.35% before of the FOMC and partly retraced to 2.38% afterwards. The Fed fund futures yields firmed slightly post-FOMC, pricing the chance of a December rate hike at 98% and thus the DXY was broadly firm, although sliding in Tokyo. 

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the pair seems ready to attempt a bullish breakout of the 114.40 price zone, after retreating from the level for a third month in the year last October. "Readings in the 4 hours chart support the case of an extension upward, as the price keeps advancing above bullish moving averages, while technical indicators head north above their mid-lines, entering the Asian session at weekly highs," Valeria argued.