USD/JPY bounces-back, heads towards 119 levels

FXStreet (Mumbai) - The US dollar bounced-back versus the yen in the European morning, shaving off weak US payrolls induced losses as the fall in the US dollar was seen as excessive.

Currently, the USD/JPY pair traded at 118.83, up 0.30% on the day, rebounding from intraday low of 118.10 levels. The US dollar regained strength against major currencies as risk-on environment e-emerged. The dollar index reversed losses and marched towards multi-year peak once again, trading now at 92.35, up 0.18% on the day.

Moreover, expectations of a tightening Japan’s trade surplus also led the USD bulls higher versus the Japanese currency. Japan’s trade balance data is due for release tomorrow.

USD/JPY Technical Levels

To the upside, the next resistance is located at 119 levels and above which it could extend gains 119.50 levels. To the downside immediate support might be located at 118 levels, below that at 117.54 levels.

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