The Japanese yen is trading on a softer note vs. the greenback today, with USD/JPY hovering over the 112.80 area ahead of the opening bell in Europe. USD/JPY bid on risk pick-up The better sentiment around the risk appetite has been supported by a positive close of equity markets in China and Japan at the beginning of the week, while traders in Asia keep adjusting to the recently released US CPI figures during January. Ahead in the NA session, Markit’s manufacturing PMI is due followed by the Chicago Fed National Activity Index. Regarding positioning, net speculative longs in JPY has increased by more than 4000 contracts in the week ended on February 16, according to the last CFTC report. USD/JPY levels to watch As of writing the pair is gaining 0.07% at 112.74 with the next support at 110.98 (low Feb.11) ahead of 105.88 (200-m sma) and finally 105.18 (monthly low Oct.2014). On the slip side, a breakout of 114.89 (high Feb.16) would aim for 115.28 (high Feb.10) and then 115.74 (20-day sma). For more information, read our latest forex news.