The Japanese currency is surrendering part of its strong initial gains vs. its American peer, now lifting USD/JPY back above the key 115.00 handle. USD/JPY attention to Yellen’s testimony After testing the area of yesterday’s lows around 114.40, the pair has managed to pick up pace and rebound beyond the 115.00 mark following a return of the risk-on sentiment to the markets. Traders have quickly shrugged off another slump in the Japanese Nikkei during overnight trading, giving the dollar some oxygen ahead of Yellen’s semi-annual testimony before Congress, expected later in the European evening. USD/JPY levels to watch As of writing the pair is gaining 0.10% at 115.14 with the next hurdle at 117.53 (high Feb.8) ahead of 117.87 (20-day sma) and then 119.78 (55-day sma). On the flip side, a breakdown of 114.24 (low Feb.8) would aim for 112.41 (monthly low Nov.2014) and finally 105.18 (monthly low Oct.2014). For more information, read our latest forex news.