USD/JPY climbs to session highs as sentiment turns around

By FXStreet FXStreet (Córdoba) – USD/JPY extended its recovery from 1-year lows and climbed to fresh session highs in afternoon trading as sentiment improved tracking a sharp bounce in oil prices.

USD/JPY has recovered more than 100 pips since bottoming out at 116.95, and reached a session high of 117.04 in recent dealings. At time of writing, the pair is trading at 116.88, still 0.63% below its opening price.

The yen strengthened across the board during the first half of the day amid risk aversion, but then changed course as sentiment improved by the end of the New York session.

USD/JPY levels to watch

In terms of technical levels, next supports are seen at 115.96 (Jan 20 low), 115.84 (2015 low, Jan 16). Once below this latter, USD/JPY will be trading at its lowest since Dec 2014. Next support stands at 115.55 (Dec 16 2014 low). On the other hand, resistances could be found at 117.67 (Jan 19 high), 118.37 (Jan 13 high) and 118.79/82 (20-day SMA/Jan 8 high).
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Source:: FX Street