Japanese Yen trampled on as risk reaction dominates markets

A sharp rebound in investor sentiment has seen the Japanese Yen decline more than 1.2% against the US dollar since the start of the week.

• The US dollar gained 0.38% on the yen to trade at ¥120.26 on Wednesday morning in Tokyo.
• Global equity markets experienced a strong rebound on Wednesday.
• Both the Nikkei and Topix indices in Japan were traded more than 4% higher, the biggest gains since October when the Bank of Japan announced additional monetary easing.
• Japanese exporter sales likely reason for top-heaviness.
• USD/JPY topside limited despite almost 1000-point surge in Nikkei.
• Initial Resistance are seen around 120.45, 120.71 levels, support is seen at 119.58 levels.