USD/JPY bounces off lows, approaches 109.00

After dropping to the area of daily lows near 108.50, USD/JPY has managed to regain traction and visit the boundaries of 109.00 the figure.

USD/JPY attention to US calendar

The Japanese currency met some buying interest early in Asia following market chatter on FX intervention by the BoJ, although the demand for the safe haven seems to have lost momentum during the European session, offsetting USD strength.

However, the pair will remain under pressure in light of the upcoming release of US Retail Sales, Business Inventories and the Consumer Sentiment index tracked by the Reuters/Michigan index.

USD/JPY levels to watch

As of writing the pair is losing 0.20% at 108.81 facing the immediate support at 105.52 (2016 low May 3) followed by 105.18 (monthly low Oct.2014) and then 101.97 (monthly low Aug.7 2014). On the other hand, a breakout of 109.40 (high May 12) would aim for 110.72 (55-day sma) and finally 111.92 (high Apr.28).