USD/JPY fades spike above 116.00

The Dollar-Yen pair retreated from the session high of 116.21 to trade largely at the session low of 115.75 levels on signs of risk aversion in the Asian equities.

US dollar on the back foot

The offered tone around the American dollar has gathered pace, which added further pressure around the USD/JPY pair. Moreover, Friday’s US wage growth release was good… but the action seen this week suggest the data was not good enough to secure a bullish break in the US dollar.

Meanwhile, a 0.8% drop in Australia’s S&P/ASX 200 index and moderate losses in the Asian equities is also adding to the bid tone around the Yen.

USD/JPY Technical Levels

A break below 115.38 (4-hr 200-MA) would open the door to a possible break below 115.00 (zero figure) and a slide to 114.54 (Nov 30 high). On the other hand, a break above 116.00 (zero figure) would expose 116.23 (5-DMA) and 116.71 (10-DMA).