USD/JPY looks to regain 106.00

By FXStreet After hitting fresh cycle lows near 105.50 in overnight trading, USD/JPY has managed to stage a rebound and is now retaking the 106.00 handle.

USD/JPY coming back from 105.50

Despite the current bounce, spot remains well into the negative territory and suffering both USD-selling and a solid demand for the Japanese safe haven, briefly testing levels last seen in October 2014 during the Asian trading hours.

Data wise in the US, the IBD/TIPP Economic Optimism index is due later ahead of the speech by Cleveland Fed’s L.Mester and the API’s report on crude stockpiles.

USD/JPY levels to watch

As of writing the pair is retreating 0.40% at 105.98 facing the next support at 105.55 (2016 low May 2) followed by 105.18 (monthly low Oct.2014). On the other hand, a surpass of 109.00 (20-day sma) would expose 111.42 (55-day sma) and finally 111.92 (high Apr.28).
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Source:: FX Street