USD/JPY testing lows around 118.90

FXStreet (Edinburgh) - The greenback is shedding some of the recent gains vs. the Japanese yen, now dragging USD/JPY to test the lower band of the range around 118.90/85.

USD/JPY hinges on USD, BoJ eyed

The dollar dynamics remains the main driver behind the current price action in the pair amidst empty docket in Japan. Spot is also paying attention to the events stemming from the Eurogroup-Greece debt talks, as it is an immediate key catalyst for the risk appetite.

In the shorter horizon, the BoJ minutes due on Monday and Janet Yellen’s testimony before the US Parliament will be the main events in both economies next week.

USD/JPY relevant levels

At the moment the pair is losing 0.10% at 118.85 with the next support at 118.42 (low Feb.19) ahead of 118.28 (cloud top) and finally 118.16 (Kijun Sen). On the upside, a breakout of 119.42 (high Feb.17) would open the door to 120.48 (high Feb.11) and then 120.68 (high Jan.5).

GBP/USD rises from 61.8% fib level

The GBP/USD pair rose from the support of 61.8% fib expansion level (1.4988 to 1.5350 and 1.5195) located at 1.5419 ahead of the UK retail sales data, which could show a month-on-month dip in the turnover.
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