USD/JPY fails to hold above 118.00

USD/JPY moved off daily highs and trimmed gains. The greenback lost strength amid a recovery in US bonds and with the Dow Jones unable so far to break above the 20,000 mark. 

The pair peaked during the European session at 118.23, below last week highs and currently is trading slightly below the 20-hour moving average at 117.70/75. The retreat so far found support at 117.60. The intraday tone now favors the Japanese yen while the US dollar lost momentum in the market. The DXY dropped from 14-year highs at 103.57 to 103.05. 

Despite moving off highs, USD/JPY is still higher for the day after a 2-day correction, that sent the price from multi-month highs at 118.65 to 116.53 (Dec 19 low). 

Technical levels 

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 opposite direction resistance level might lie at 118.20/25 (daily high) and 118.65 (Dec 15 high).