USD/JPY dropped to test daily lows located around 114.20 but bounced sharply to the upside. The recovery again was capped below 115.50 and the pair pulled back under 115.00. Currently, it trades at 114.80, a hundred pips below yesterday’s closing price. But also off session lows. The US dollar started to recover as stocks in the US jumped trimming losses. But then the recovery of equities lost strength and USD/JPY turned again to the downside. The Dow Jones was falling 0.70% and the Nasdaq was down 0.60%. USD/JPY outlook The outlook of the pair favors the downside with the price holding below 116.00, that was a key support area. Greenback is headed toward the sixth daily decline of the last seven trading days. The demand for the yen remains high across the board amid risk aversion that more than offset last week decision of the Bank of Japan to introduce negative interest rates, that weakened only temporally the yen. For more information, read our latest forex news.