USD/JPY erases losses and approaches 118.00

USD/JPY rebounded during the lasts hours amid a recovery of the US dollar in the market, and moved off daily lows, erasing losses. The pair found support above 117.00 and currently it trading at 117.75/50, around the same level it closed on Tuesday. The recent rebound peaked at 117.85, the strongest since the Asian session. 

The rebound took place as equity prices in Wall Street decline modestly. The Dow Jones was falling 0.09% and the Nasdaq was down 0.23%. In the bond market, yields remain steady. It has been a quiet session across financial markets. 

The recovery of the US dollar started after the release of the existing home sales report in the US, that showed a gain of 0.7% in November, above market consensus that expected a 1.0% decline. 

Technical levels 

On a wider perspective, the pair continues to consolidate around 117.50. To the downside, support level might be located at 117.60/65 (American session low), 116.95/117.00 (daily low) and 116.55 (Dec 19 low). On the flip side, resistance could be seen at 117.85 (American session high), 118.25 (Dec 20 high) and 118.65 (Dec 15 high).