USD/JPY continues to back away from 118.00

USD/JPY came under renewed pressure over the last minutes and fell to fresh daily lows, although it continues to trade within its recent range near multi-month highs.

USD/JPY failed to sustain gains above the 118 mark and dropped nearly 100 pips back to the 117.10 area as the greenback weakened a tad across the board. At time of writing, the pair is trading at the 117.30 area, 0.44% below its opening price, although the broader picture continues to look bullish.

The dollar has risen sharply over the last days after the FOMC raised rates last week and offered a more hawkish view for 2017. In the data front, existing home sales for November is due next.

USD/JPY technical levels

In terms of technical levels, next supports are seen at 117.00 (psychological level), 116.46 (10-day SMA) and 115.00/114.94 /psychological level/20-day SMA). On the other hand, resistances line up at 118.00/05 (psychological level/Dec 21 high), 118.65 (Dec 15 high) and 119.00 (psychological level).