USD/JPY supported at 117.00

FXStreet (Edinburgh) - The Japanese yen is again gathering pace vs. its American counterpart on Tuesday, sending USD/JPY to test intraday lows in the 117.00 region overnight.

USD/JPY following USD weakness

The pair is trading on the back footing while markets are still digesting the poor results from yesterday’s US docket, putting further selling pressure to the greenback. The yen is deriving further buying interest from the offered tone around AUD/JPY following the rate cut by the RBA.

Ahead in the session, US Factory Orders during December are due (2.2% MoM exp.) in what will be the main highlight across the pond, followed by the speech by Fed’s N.Kocherlakota. Next of note in the Japanese docket will be tomorrow’s Labor Cash Earnings and the Services PMI.

USD/JPY levels to consider

As of writing the pair is down 0.01% at 117.46 with the next support at 116.84 (low Feb.2) ahead of 116.00 (psychological mark) and then 115.85 (2015 low Jan.14). On the upside, a breakout of 117.88 (high Feb.2) would expose 118.30 (Kijun Sen) and finally 118.47 (high Jan.30).

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