USD/JPY deflates from highs, near 106.80

By FXStreet The Japanese yen is reclaiming some of the ground lost in early trade vs. the dollar, with USD/JPY coming back to trade below the 107.00 handle on Wednesday.

USD/JPY attention to ADP, data

The greenback remains on a firm note today, extending yesterday’s rebound after the US Dollar Index (DXY) has bottomed out around 91.90, levels last seen in January 2015.

After climbing as high as the 107.50 area during overnight trade, spot lost upside momentum and has returned to the 106.80 region, albeit keeping the buoyant tone ahead of US ADP report and the ISM Non-manufacturing.

USD/JPY levels to watch

As of writing the pair is advancing 0.18% at 106.81 facing the next hurdle at 108.89 (20-day sma) followed by 111.30 (55-day sma) and finally 111.92 (high Apr.28). On the flip side, a breakdown of 105.55 (2016 low May 2) would open the door to 105.18 (monthly low Oct.2014) and then 101.97 (monthly low Aug.7 2014).
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Source:: FX Street