USD/JPY rebounds from 1-month lows

The Japanese yen is still up for the day across the board but lost strength during the last hours, as equity prices stabilized and following a rally of the US dollar. USD/JPY rebounded from fresh lows and rose above 111.00. Tensions between the US and North Korea boosted the yen late on Tuesday and the risk aversion environment gave it support. 

USD/JPY trims losses 

After the beginning of the American session, the pair bottomed at 109.55, a fresh 8-week low. Then rebounded and rose to 110.15. Currently is hovering around 110.00, having difficulties holding on top of that area. 

Equity price in the US managed to trim losses. The Dow Jones is falling 0.27% at 22,025 points. The index remains above 22,000 still with a bearish bias. In the bond market, US Treasuries are up, but during the last hours, the upside momentum eased, favoring the recovery of the USD/JPY. 

Levels to watch 

Despite the recovery, technical indicators and moving averages in 4-hour charts point to the downside. USD/JPY needs to rise and hold above 110.10/20 in order to remove the current bearish pressure. Above, price could resume the range trading between 111.05 and 109.80. 

A decline below 109.80 would expose daily lows. Under that area, the next support levels might lie at 109.45/50 and 109.10/15 (Jun 7 low), before June lows at 108.80.