USD/JPY rejected once again near 106.70, revisits 106.30

By FXStreet USD/JPY’s recovery from multi-month lows once again met supply near 106.70 region, knocking-off the major sharply lower towards session lows.

USD/JPY heading towards 18-month lows?

The dollar-yen pair came under renewed selling pressure in the European session, as the yen halted its corrective slide and resumed its ongoing bullish streak backed by BOJ’s inaction at its policy meeting last week. More so, a renewed bout of selling interest hit the US dollar against its major peers and added to the subdued trading seen in USD/JPY. At the moment, the major hovers around 106.40, having tested fresh session lows near 106.35, down -0.05% on the day.

Later today, the US ISM index and the sentiment on the European and US stocks will drive the moves in the major. While in the week ahead, the US jobs data along with Fed speaks will have major influence on USD/JPY.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 107 (round number). A break above the last, the major could test 107.75 (5-DMA). While to the downside, the immediate support is seen at 106.16/00 (Multi-month lows) and below that at 105.50 (Oct 2014 levels).
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Source:: FX Street