USD/JPY keeps highs near 118.60

By FXStreet FXStreet (Edinburgh) – The Japanese currency is now testing its lowest level vs. the greenback today, with USD/JPY hovering over the 118.50/60 band so far.

USD/JPY propped up by US data, risk

Better sentiment in the risk-on space backed by a recovery in crude oil prices has helped spot to revert the initial weakness and advance well above the 118.00 handle.

Collaborating with the upside US S&P/Case-Shiller index and Consumer Confidence gauged by CB have surpassed expectations, while Markit’s Services PMI has disappointed markets.

USD/JPY levels to watch

The pair is up 0.16% at 118.50 facing the next hurdle at 119.82 (50% Fibo of 123.67-115.96) followed by 120.70 (55-day sma) and then 121.48 (200-day sma). On the other hand, a breach of 117.78 (23.6% Fibo of 123.67-115.96) would open the door to 115.96 (low Jan.19) and finally 115.82 (low Jan.15 2015).
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Source:: FX Street