USD/JPY is currently on the offer in early Tokyo despite a higher open in Asian equity markets following a mostly positive close on Wall street with strength in commodities playing their role and helping improve risk sentiment. Despite the cap in the oil rally, it has staged a strong recovery this week and this is fuelling risk, albeit within a frail environment and investors are still moving along with caution. For today, we have had the Japanese trade balance with exports -6.8 vs -6.9 expected y/y against prior -4.0%. BoJ governor Kuroda has o alssaid that the Japanese economy is recovering at a trend that is likely to continue, further supporting the Yen. USD/JPY levels USD/JPY remains the psychological 1110.00 level, despite best efforts from the recovery of 108.79 intraday lows overnight capped at 109.47. "We will stick to our immediate bearish forecast while it remains below last week's high at 109.74," explained Karen Jones, chief analyst at Commerzbank. "Below 107.63 lies major support – namely the 106.63 38.2% Fibonacci retracement of the move up from 2012. In this vicinity we also find the 200 month moving average at 105.86 and we suspect that the currency pair will attempt to stabilise here." For more information, read our latest forex news.