USD/JPY trim losses

FXStreet (Córdoba) - USD/JPY extend the recovery recently and printed a fresh high for the American session at 118.16 but so far it was unable to hold above 118.00. It was trading at 117.93, 80 pips below the level it closed yesterday.

During the European session the pair bottomed at 117.17 and rebounded to the upside as the US government bond yields rose. The yen pulled back, trimming gains, against greenback and also versus European currencies. Stocks ended higher in Europe and were up in Wall Street. Despite risk appetite commodity currencies were falling sharply with the kiwi and the loonie trading at multi-year lows.

USD/JPY levels to watch

To the upside immediate resistance lies at 118.20, 118.55 and 118.85/90 (Jan 20 low). On the opposite direction support could be located at 117.90, 117.60, 117.15, 116.90 (Jan 19 low).

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