The Japanese yen is extending its gains vs. the greenback on Monday, dragging USD/JPY to test session lows in the 111.30 area. USD/JPY drops further post-Payrolls The Japanese Yen has started the week on a firm footing following the underperformance of the Nikkei in spite of the recent auspicious Payrolls figures in the US economy and some heavy trading in JPY-crosses. Next on tap will be US Factory Orders, Fed’s Labor Market Conditions Index and the speech by Boston Fed’s E.Rosengren. USD/JPY levels to watch As of writing the pair is retreating 0.28% at 111.40 and a break below 110.65 (low Mar.17) would open the door to 105.18 (monthly low Oct.2014) and finally 100.74 (monthly low Feb.4 2014). On the flip side, the initial up barrier is located at 112.57 (high Mar.29) ahead of 113.81 (high Mar.29) and then 114.35 (55-day sma). For more information, read our latest forex news.