FXStreet (Edinburgh) - The Japanese yen is intensifying its appreciation vs. the greenback on Monday, sending USD/JPY to re-test the 118.40 zone. USD/JPY upside halted near 119.00 A bout of risk aversion is now giving extra legs to the Japanese currency and prompting spot to deflate to the 118.40 area, shrugging off some upside momentum following a rejection from the vicinity of the 119.00 handle in early trade. On the data front, Japanese trade balance showed a ¥140 billion surplus during December, albeit exports and imports have contracted 8.0% and 18.0%, respectively. Further data saw the Leading Index and the Coincident Index coming in short of expectations in November. In the US, the Dallas Fed manufacturing gauge is out later today, with consensus expecting an improvement to -15.0 for the current month. USD/JPY levels to watch The pair is losing 0.24% at 118.52 and a breach of 117.78 (23.6% Fibo of 123.67-115.96) would open the door to 115.96 (low Jan.19) and finally 115.82 (low Jan.15 2015). On the flip side, the next hurdle lines up at 119.82 (50% Fibo of 123.67-115.96) followed by 120.79 (55-day sma) and then 121.48 (200-day sma). For more information, read our latest forex news.