USD/JPY off lows around 117.50, awaits Kuroda

FXStreet (Mumbai) - With the rebound in the European indices, the risk-off moods seems to have eased a bit in the European session, now pushing USD/JPY back towards the mid-point of 117 handle.

USD/JPY bounces-off lows near NY low

Currently, the USD/JPY pair trades -0.24% lower at 117.48, retreating from fresh session lows struck at 117.23. The major found support near the last NY session lows at 117.19, and the prices rebound slightly as risk-sentiment seems to be improving on the back solid-recovery seen in the European stocks, having dropped to three-month lows on Monday.

Moreover, oil prices also halted their losing run and consolidate ahead of the US API weekly stockpiles report, which also supports the recovery in USD/JPY. Meanwhile, markets now await BOJ Governor Kuroda’s speech for fresh insights on the monetary policy outlook, with further easing on the cards in 2016?

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 118.02/03 (Jan 11 & Today’s High). A break above the last, the major could test 118.51 (10-DMA). While to the downside, the immediate support is located at 117 (round number) below which 116.70 (Jan 11 low) would be tested.

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