USD/JPY sinks to lows near 106.70

The Japanese yen is appreciating further early in the European session, now dragging USD/JPY to test lows in the 106.70 region.

USD/JPY looks to US data, risk

The pair has accelerated the breakdown of the 107.00 support today, fading the initial positive start and sparking an abrupt correction lower towards session lows in the 106.70/65 band following a bout of selling pressure surrounding the greenback.

Ahead in the session, risk appetite trends are poised to drive sentiment amidst a vacuum of significant events and ahead of US Consumer Sentiment for the current month (94.0 exp.).

USD/JPY levels to watch

As of writing the pair is retreating 0.35% at 106.71 facing the immediate support at 106.38 (low Jun.6) ahead of 105.52 (2016 low May 3) and finally 105.18 (low Oct.15 2015). On the flip side, a break above 107.92 (high Jun.7) would aim for 108.90 (20-day sma) and then 109.16 (55-day sma).