USD/JPY off-lows, manages to regain 108.00

USD/JPY reversed its corrective slide and now looks to extend its recovery beyond 108 handle, in a bid to re-test five-month tops reached just ahead of 108.50 barrier.

USD/JPY supported above daily pivot

The bulls take a breather after the recent upside momentum, allowing a minor-correction in the USD/JPY pair during the Asian hours, following a retreat in the treasury yields and thus, eventually the greenback. The major is last seen exchanging hands at 108.04, down -0.35%, having recovered from session lows of 107.80.

The major is seen making minor-recovery attempts over last hours amid risk-off flows, which continue to underpin the safe-haven yen. Moreover, a fresh bout of profit-taking cannot be ruled in the major, as we head towards the crucial US macro news, the retail sales data, due later on in the NA session.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 108.56 (multi-month high). A break above the last, the major could test 109 (zero figure) and 109.15 (daily R1) beyond the last. While to the downside, the immediate support is seen at 107.80 (daily pivot) next at 107.37 (5-DMA) and below that at 107.10 (daily S2).