USD/JPY off highs, returns to 107.70

The Japanese currency remains on the defensive on Tuesday, lifting USD/JPY to the area of session highs in the 107.70/80 band.

USD/JPY rebounds from 107.20

After a brief test of the 107.20 area, spot managed to regain strength and advance to the vicinity of the 108.00 handle, although the bullish attempt seems to have run out of steam for the time being, deflating to the 107.70 zone.

In the meantime, USD is still under pressure following yesterday’s cautious albeit optimistic tone from Chair Yellen’s speech, hovering over the area of recent lows post-Payrolls.

Ahead in the week, Japan’s GDP figures for the first quarter will take centre stage tomorrow followed by the key Tertiary Industry Activity index due on Friday

USD/JPY levels to watch

As of writing the pair is up 0.20% at 107.77 facing the immediate up barrier at 109.21 (20-day sma) ahead of 109.50 (55-day sma) and finally 111.45 (high May 30). On the other hand, a breakdown of 106.38 (low Jun.6) would target 105.52 (2016 low May 3) en route to 105.18 (low Oct.15 2015).