USD/JPY drops to lows near 113.40

The Japanese yen is gathering further traction today, sending USD/JPY to the area of session lows near 113.40.

USD/JPY corrects from 114.50

Spot is coming down after being rejected from recent peaks near 114.50 in spite of the better tone surrounding USD at the beginning of the week.

The Japanese currency seems to have found some support following comments by BoJ H.Kuroda in early trade, stressing that the central bank will remain vigilant on the impact of the recently announced negative rates, all amidst the usual rhetoric and increasing scepticism amongst market participants.

USD/JPY levels to watch

As of writing the pair is retreating 0.47% at 113.41 with the next support at 112.14 (low Mar.1) followed by 110.98 (low Feb.11) and finally 110.00 (psychological handle). On the other hand, a breakout of 114.56 (high Mar.3) would aim for 114.89 (high Feb.16) and then 115.09 (38.2% Fibo of 121.70-110.98).

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