USD/JPY off lows, back above 106.00 as Wall Street rises sharply

• Yen losses strength on Wall Street rally. 
• USD/JPY off lows, still limited above 106.00.

USD/JPY climbed to 106.15 reaching the highest level since the European session. The pair moved off daily lows amid a rally in equity prices in Wall Street. The risk appetite tone boosted the pair. The Dow Jones was rising more than 1%. 

US stocks were unaffected by a joint statement from leaders of France, Germany, US and UK blaming Russian for the poisoning of the former spy. Also, the US Treasury Department announced sanctions against Russian cyber actors for interfering with the US election and malicious cyber-attacks.  

Previously, US economic data had a minor impact on FX rates. Weekly jobless claims dropped to 226K in line with expectations while the Empire Manufacturing Index jumped to 22.5 surpassing expectations. On the negative, the Philly Fed index dropped to 22.3 from 25.8. The data is not likely to influence Fed expectations. The FOMC meeting is next week. 

USD/JPY levels to watch 

To the upside, immediate resistance is seen at the 106.15/20 area, followed by 106.40 and 106.70/75 (Mar 14 high). On the flip side, support could be located at 105.75/80 (Mar 15 low), 105.45 (Mar 7 low) and 105.20 (Mar low).