USD/JPY has started to feel some upside pressure and the Yen is back tracking its advance . However, the upside is limited given that US stocks are performing in the red and weighed on by oil prices. Oil keeps driving sentiment WTI oil has dropped from $33.32 the high to $31.61 the low so far as its seems there will not be any cutting of production any time soon while the Suadi oil minister prefers to see the market determine the price and a low prices to adjust accordingly over time, signally that there is more downside to come, especially given Iran and Iraq are both raising their production. While uncertainty shapes the market, the Yen will remain in demand. However, Kuroda has been signalling to the market that we should expect further cuts from the BoJ, perhaps as soon as next month which should keep a lid on any advances on the 113 handle on a recovery attempt. USD/JPY levels Technically, analysts at BBH noted that, "The dollar has been pushed through the JPY112.00 level after trading near JPY113.40 yesterday". The analysts added, "We have been concerned that from a technical perspective, there was scope for the greenback return to (and possibly through) the low just below JPY111.00 on February 11. We have identified the JPY110.50 area as a near-term objective and recognize the significance of JPY110." Meanwhile, RSI on the hourly is in neutral at 40.20 and price is capped buy the descending 20 sma on the same time frame at 112.29. S1 is at 112.06, S2 at 112.35 and S3 at 112.63. On the flip side,R1 is at 113.61, R2 is at 113.90 and R3 is located at 114.18. For more information, read our latest forex news.