FXStreet (Guatemala) - With spot at 119.39 at time of writing and off the lows from overnight trade at 118.70, USD/JPY is making a recovery, albeit very minor, after a very strong headwind of risk took it down through major technical and psychological levels. The stock markets were in free-fall which all supports the Yen in the near term on a risk-off profile and run for cover while 2016's outlook is very uncertain. But analysts are warning of caution into getting to short ahead of ourselves as fundamentals may not allow for a one way bet in this case, especially should the BoJ take bolder steps to reach their 2% inflation target in the near term. This week is very crucial if a recovery can get the major back into neutral, but a disappointment in the jobs data will be very damaging in a market that is already in the fence as to whether the Fed can continue normalizing rates in H1. USD/JPY levels Technically, a break back through 120.00 is required to alleviate major downside pressures in the short-term. We have broken 119.11 and 2012-2015 uptrend and now target the uptrend from 118.11 (118.06 is October 2015 low). Below the market, 119.41 at time of writing, the previous Fibo support is at 119.06. For more information, read our latest forex news.