USD/JPY is currently in recovery on the daily sticks from the lows of 110.97 from this year's sell-off and is bid in the opening hour of Tokyo. The upside has reached a high of 114.86 so far and in touching distance of the 115 psychological handle. However, while the foundations for a return of risk apatite remains highly fragile, there remains a bearish bias and a temptation to sell into the recovery. Today, there was a strong correlation in oil, and this commodity continues to drive the market. "The underwhelming oil production freeze agreement saw oil prices give up earlier gains, and they currently trading at around USD29/bbl for WTI and USD32.40/bbl for Brent," explained analysts at ANZ earlier today. USD/JPY levels USD/JPY: cautiously bearish - Scotiabank USD/JPY is accumulated below the 200 sma on the hourly sticks at 114.58 and targets the 100 sma at 113.36 on the same time frame on upside failures. Outside of this range, the 112.00 level is a psychological area while the same can be said for the 116 handle on the upside. The pivot is at 114.19 before R1 at 115.13 and S1 is located at 113.64. For more information, read our latest forex news.