USD/JPY weaker, breaks below 113.00

By FXStreet The Japanese yen is gathering further steam at the end of the Asian session, dragging USD/JPY back below the 113.00 key support.

USD/JPY lower on risk aversion

The safe haven JPY is trading on a firmer note at the beginning of the week, as risk aversion is now back in the markets after a poor performance of both the Nikkei and Shanghai indices, losing almost 1% and more than 4%, respectively for the day.

At his speech before Parliament, Governor Kuroda argued that the government’s growth strategy remains crucial in order to sustain inflation, while PM S.Abe has ruled out calling snap elections or postpone the sales tax hike.

USD/JPY levels to watch

As of writing the pair is retreating 0.93% at 112.87 and a breakdown of 110.98 (low Feb.11) would expose 105.88 (200-m sma) and finally 105.18 (monthly low Oct.2014). On the flip side, the next up barrier aligns at 114.05 (20-day sma) followed by 114.89 (high Feb.16) and then 115.09 (38.2% Fibo of 121.70-110.98).
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Source:: FX Street