USD/JPY rebounds from lows, regains 114.00

The greenback keeps today’s offered tone, dragging USD/JPY back to session lows in the 113.60 area albeit bouncing off afterwards.

USD/JPY lower on risk aversion

Disappointing results from the earlier meeting between oil ministers have triggered a sharp correction lower in crude oil prices, opening the door to a return of the risk-off trade and sparking some JPY buying.

The Japanese currency is thus recovering some ground lost after overnight lows near 115.00 the figure vs. its American counterpart. Ahead in the session and with US markets back to normal activity, the Empire State index is due, followed by the NAHB index and TIC Flows.

USD/JPY levels to watch

As of writing the pair is retreating 0.49% at 114.02 with the next support at 110.98 (low Feb.11) ahead of 105.18 (monthly low Oct.2014) and finally 104.03 (monthly low Sep.2014). On the other hand, a breakout of 115.28 (high Feb.10) would expose 116.98 (20-day sma) and then 119.07 (55-day sma).

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