USD/JPY struggles below the 113.00 mark. Economists at TD Securities think the 112.00 level offers major support and should be a buying point for USD/JPY.

A dip into 112.00 is likely

“With Treasury markets settling, we think the path to 112.00 remains, but we see no appeal in chasing it.”

“On a cross-asset valuation basis, USD/JPY is fair.”

“We think USD/JPY is essentially at the mercy of technicals and Fed pricing. The latter looks to have mostly quieted down while the former should reinforce cloud support at 112.00.”