USD/JPY off highs, back to 118.30

FXStreet (Edinburgh) - A better sentiment towards the risk appetite has pushed USD/JPY to the 118.40/45 band, printing daily highs at the same time although losing steam afterwards.

USD/JPY stronger as risk appetite soars

The strong rebound in crude oil prices plus a better mood hovering over European equities has given risk appetite further excuse to revert the negative start, helping spot to bounce off daily lows in the 117.60 region.

In the data space, US Services PMI tracked by market, the S&P/Case-Shiller index and Consumer Confidence are all due in the US docket, while market participants keep warming up for tomorrow’s FOMC meeting and Friday’s BoJ monetary policy statement.

USD/JPY levels to watch

The pair is losing 0.01% at 118.27 and a breach of 117.78 (23.6% Fibo of 123.67-115.96) would open the door to 115.96 (low Jan.19) and finally 115.82 (low Jan.15 2015). On the flip side, the next hurdle lines up at 119.82 (50% Fibo of 123.67-115.96) followed by 120.70 (55-day sma) and then 121.48 (200-day sma).

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