The better sentiment around the Japanese currency has sent USD/JPY to test the 110.40/30 band, fresh multi-month lows. USD/JPY stronger on risk aversion Spot has accelerated its downside to levels last seen in October 2014 in the proximity of 110.30, following the persistent weakness in Japanese equities amidst a solid sentiment towards the risk aversion. Ahead in the session, US Services sector will take centre stage via gauges by Markit and ISM, followed by Trade Balance figures and the API’s weekly report on crude stockpiles. USD/JPY levels to watch As of writing the pair is retreating 0.88% at 110.36 and a break below 105.18 (monthly low Oct.2014) would expose 100.74 (monthly low Feb.4 2014). On the flip side, the initial up barrier is located at 112.42 (20-day sma) ahead of 113.81 (high Mar.29) and then 114.23 (55-day sma). For more information, read our latest forex news.