The dollar may be staging a bit of a recovery that started overnight, but USD/JPY is now lower on the day
Earlier, the pair made a run up highs of 111.48. It seems that offers near the 111.50 level are putting off buyers from a breakthrough to send the pair higher for now.
Looking at the hourly chart, there's also the 200-hour MA which sits nearby - another important resistance level that buyers have to break in order to find the next leg higher.
For now, the pair is trading back below the 38.2 retracement level as well - showing that the rejection at this level is quite strong. Adding to that, there's also a sudden change in the equities market.
The Nikkei and Hang Seng index are both lower on the day now, giving up gains for majority of the trading session. Risk sentiment is a key driver for the yen, though I don't see a reason that that should be affecting the yen currently. It is likely profit-taking for the Nikkei as it cracked the 24,000 barrier earlier.
