USD/JPY looking to stabilize near 118.70

By FXStreet FXStreet (Edinburgh) – After bottoming out in the 118.40/30 band in overnight trade, USD/JPY has managed to regain some ground and advance to the current area of 118.70.

USD/JPY eyes US data

Spot is losing ground since Monday bolstered by a re-emergence of the risk aversion in the global markets in response to the increasing uncertainty surrounding China and the ongoing effervescence between Iran and Saudi Arabia.

In the meantime, the pair continues to navigate around levels last traded in mid-October while market participants are warming up for today’s significant releases in the US economy: ADP Employment report, Factory Orders and the FOMC minutes.

USD/JPY levels to consider

As of writing the pair is retreating 0.32% at 118.65 facing the next support at 118.04 (low Oct.15) ahead of 116.46 (low Aug.24) and then 115.56 (low Dec.16 2014). On the flip side, a breakout of 120.67 (high Dec.30) would open the door to 121.05 (100-day sma) and finally 121.61 (200-day sma).
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Source:: FX Street