USD/JPY is currently making a come back within a wide range having been in free-fall since losing the 116 handle. The correction of the 121 downside at the end of January's business comes as markets again try to gain some traction and as investors look for returns on their otherwise idle capital, where in some nations your are effectively paying to leave it in the bank, or at best earning very little on your money in the money markets. However, bulls are not out of the woods yet by a long shot, but a breach of 115.50 would put the downside to 110.00 into serious question for the near term. Medium term, the prospects of the Fed not being able to hike would add fuel to the bears case while the BoJ, however, maybe forced into a corner should such data as the GDP Q4 continue to disappoint and weigh on the inflationary outlook for the Japanese economy. USD/JPY levels USD/JPY is targeting the 200 hour sma at 115.13 having crossed the 100 and taking the 20 up through the level in a bullish cross over. The RSI on the same time frames is in over bought territory at 74 with R2 at 114.73 and R3 at 115.91, expected to be a strong resistance level. For more information, read our latest forex news.