FXStreet (Edinburgh) - USD/JPY remains entrenched in the negative territory following the prevailing risk aversion mood, currently hovering over the 118.40 area. USD/JPY supported around 116.00 Poor performance from US Treasuries is hitting the dollar at the beginning of the week, although it still manages well to keep business above the 118.00 key support. Spot has started the session on a positive note, although the bull run to the boundaries of 119.00 the figure lacked of follow through, allowing the subsequent correction lower. Data wise across the pond, the Dallas Fed manufacturing index is due later, with consensus expecting an improvement t0 -15.0 for the current month. USD/JPY levels to watch The pair is losing 0.27% at 118.51 and a breach of 117.78 (23.6% Fibo of 123.67-115.96) would open the door to 115.96 (low Jan.19) and finally 115.82 (low Jan.15 2015). On the flip side, the next hurdle lines up at 119.82 (50% Fibo of 123.67-115.96) followed by 120.79 (55-day sma) and then 121.48 (200-day sma). For more information, read our latest forex news.