The buying interest in the safe haven JPY spiked, pushing the USD/JPY pair back below 115.00 and on track to re-test daily low of 114.21 levels.
Hovers around 114.50
The flight to safety triggered by a drop in the US index futures strengthened the bid tone around JPY. The spot thus turned lower from 115.54 levels to trade around 114.50 levels ahead of the US opening bell.
The bullish momentum in the JPY remains at the mercy of the equity market sentiment. Given, the US data calendar is light; there is very little reason for a sharp turnaround in stocks.
USD/JPY Technical Levels
The immediate resistance is seen at 115.00 handle, above which the pair could rise to 115.97 (Jan 20 low). A break higher would expose 116.47 (Jan 21 low). On the other hand, a break below 114.21 (daily low) could see the pair test 114.00 handle, under which a major support is seen directly at 111.55 (161.8% fib exp of May 2015 high-Aug 2015 low-Nov 2015 high).
(Market News Provided by FXstreet)