USD/JPY retakes 117.00 and above

By FXStreet FXStreet (Edinburgh) – After the overnight dip to fresh lows near 116.70, USD/JPY has managed to pick up pace and regain the 117.00 mark and advance to the current 117.20/30 band.

USD/JPY lower on risk-aversion

Another weak start for the Chinese equities today has prompted the risk aversion to gather traction in the global markets, lending further support to the safe haven JPY and extending the pair’s recent decline.

The Japanese currency is deriving support from the speculative position as well, as he latest IMM report has showed speculative investors are net-long JPY for the first time in the last three years.

Data wise today, the Fed’s Labor Market Conditions Index and the speech by D.Lockhart are due in the NA session following Friday’s Payrolls, while Japanese Current Account, Consumer Confidence and the Eco Watchers Survey are all due early on Tuesday.

USD/JPY levels to consider

As of writing the pair is retreating 0.12% at 117.36 facing the next support at 116.80 (low Jan.11) followed by 116.46 (low Aug.24) and then 115.82 (low Jan.16 2015). On the flip side, a breakout of 120.77 (high Dec.30) would open the door to 120.88 (100-day sma) and finally 121.57 (200-day sma).
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Source:: FX Street