USD/JPY manages to hold above 115, despite negative equities

The USD/JPY pair defends mild gains above 115 handle in the European session, as the yen bulls are fighting for control amid risk-off market profile, induced by weaker European equities and pre-Fed nervousness. Risk-off sentiment persists, with the VIX index rising nearly 1%, and keeps the sentiment around the yen buoyed somewhat, which restricts further upside in USD/JPY.         

However, higher treasury yields continue to spur broad USD buying, which allows the spot to keep 115 handle. Next on tap for the major remains the US PPI data due later in the NA session for fresh incentives.

USD/JPY Technical levels to watch             

The major finds immediate resistance at 115.53/50 (classic R3/ psychological levels). A break above the last, the major could test 115.62 (Jan 19 high) and 116 (zero figure) beyond the last. While to the downside, the immediate support is seen at 114.42 (100-DMA/ 10-DMA) next at 113.75/59 (20 & 50-DMA) and below that at 113.06/113 (Feb 16 low/ zero figure).