USD/JPY back above 106.00 after 200-pip slump

USD/JPY recovered nearly half of its intraday losses at the beginning of the New York session, with the greenback benefitting from lower than expected jobless claims last week.

USD/JPY lost over 200 pips during the European session, rejected from a 6-week high of 107.48 toward a low of 105.41 amid news that Kuroda said the BoJ was not considering "helicopter money."  The pair has recovered from lows however, and it was last trading at 106.18, still 2.91% below its opening price.

USD/JPY levels to watch

In terms of technical levels, next resistances line up at 107.48 (Jul 21 high), 107.89 (Jun 7 high) ahead of 108.30 (100-day SMA). On the flip side, supports are seen at 105.41 (Jul 21 low), 105.26 (Jul 18 low) and 104.78 (10-day SMA).