USD/JPY off highs, back near 109.30

The Japanese yen continues to lose ground vs. the greenback on Tuesday, with USD/JPY now deflating from highs near 109.50.

USD/JPY higher on risk-on sentiment

The ongoing rebound in the riskier assets is lifting the pair for the second consecutive session during the first half of the week, extending the bounce off the area of 108.80.

The up move, however, seems to have run out of steam in the mid-109.00s for the time being, while market participants now look to the US releases for clues: Housing Starts and Building Permits.

USD/JPY levels to watch

As of writing the pair is advancing 0.50% at 109.35 and a break above 110.77 (high Apr.15) would aim for 110.35 (20-day sma) and finally 112.30 (55-day sma). On the other hand, the next support aligns at 107.65 (2016 low Apr.12) followed by 105.18 (monthly low Oct.2014) and then 100.74 (monthly low Feb.4 2014).