FXStreet (Edinburgh) - The Japanese yen has started the new year on a firmer footing vs. its American counterpart, sending USD/JPY to the 119.40/30 band so far. USD/JPY firmer, Chinese equities collapse The buying interest around the safe haven JPY continues to gather traction on Monday following a slump of more than 7% in the Chinese stock market, while the Japanese benchmark has followed suit, shedding over 3% today. The resulting re-emergence of the risk aversion in the global markets has sent spot to quickly breach the 120.00 handle and trade in levels last seen in mid-October around 119.40. Data wise in Japan, the manufacturing PMI came in a tad higher at 52.6 for the last month vs. November’s 52.5. In the US docket, the manufacturing sector will be in the limelight, as the ISM and Markit’s gauges are due later in the NA session. USD/JPY levels to consider As of writing the pair is retreating 0.65% at 119.42 facing the next support at 118.55 (23.6% Fibo of 125.28-116.46) followed by 118.04 (low Oct.15) and then 116.46 (low Aug.24). On the flip side, a breakout of 120.87 (50% Fibo of 125.28-116.46) would open the door to 121.12 (100-day sma) and finally 121.63 (200-day sma). For more information, read our latest forex news.