USD/JPY hovers near 5-week lows

USD/JPY has steadied in a range over the last hours after hitting 5-week lows during the European trade as falling equities and the risk averse environment benefitted the yen.

USD/JPY extended losses into a third day and hit a low of 106.24, last seen May 4, before finding support and settling in a range nearby. At time of writing, the pair is trading at 106.45, still down 0.49% on Thursday.

The greenback remains on the defensive amid concerns that the Federal Reserve may not raise interest rates in the coming months. Immediate attention turns to US initial jobless claims data and April Wholesale inventories later in the session.

USD/JPY levels to watch

As for technical levels, a break below the 106.25/20 zone would target 105.96 (200-week SMA) en route to 105.54 (monthly low May). On the upside, next resistances are seen at 107.07 (Jun 9 high), 107.89 (Jun 7 high) and 108.54 (10-day SMA).