USD/JPY retraces daily gains

USD/JPY came under pressure and retraced most of its intraday gains after data showed US jobless claims rose more than expected last week.

USD/JPY had reached a high of 109.38 but found resistance roughly at the same level it did the last two days, and turned lower. So far, the downside has been contained by the 108.60 zone and USD/JPY trades around 108.70, still 0.21% above its opening price.

USD/JPY levels to watch

As for technical levels, next supports could be found at 108.22 (May 12 low), 107.53 (10-day SMA) and 107.07 (May 9 low). On the other hand, resistances are seen at 109.36/38 (May 10, 11 & 12 highs), 110.06 (10-week SMA) and 110.51 (50-day SMA).