The selling pressure around the Japanese yen is growing bigger, prompting USD/JPY to extend further its recovery to the 112.50/55 band so far. USD/JPY higher, risk aversion ebbs The pair has picked up pace after sellers failed to break below the 112.00 key support in early trade, allowing the current bounce to extend to the mid-112.00s ahead of the US docket. In fact, US Initial Claims are next on tap, seconded by Durable Goods Orders and the speech by Atlanta Fed D.Lockhart. Previously, St. Louis Fed J.Bullard has reiterated the Fed’s data-dependant stance while he also argued that markets could have overreacted to the December’s lift-off. USD/JPY levels to watch As of writing the pair is gaining 0.51% at 112.52 with the next hurdle at 114.89 (high Feb.16) ahead of 115.28 (high Feb.10) and then 117.82 (55-day sma). On the flip side, a breakdown of 110.98 (low Feb.11) would expose 105.88 (200-m sma) and finally 105.18 (monthly low Oct.2014). For more information, read our latest forex news.