The USD/JPY is slipping below the 107 handle as Tokyo picks up the risk-off tone from Wall Street. USD/JPY was trading up at 107.16 the high overnight after a recovery from the five-week lows at 106.24 in early European trade as the dollar picked up by 0.7% with slightly improved data. On the fundamental side, we await the upcoming BOJ meeting next week on 16h, while otherwise, the dollar remains under pressure as yields continue to come in.Initial claims fell 4k to 264k last week and is consistent with a healthy labour market, as noted by Analysts at ANZ eho explained that Fed Chair Yellen referred to this key and timely labour market indicator as sending a positive signal on the US labour market and as a counter to the weak pulse provided by the May non-farm payrolls report."April Wholesale inventories rose 0.6% and sales rose 1.0%. That pushed the inventory-sales ratio down fractionally to 1.35 vs 1.36. At the very margin that is encouraging, but the ratio is still quite elevated – suggesting a weak outlook for manufacturing."USD/JPY levelsTechnically, Valeria Bednarik, chief analyst at FXStreet explained that in the short term, "In the 4 hours chart, the technical indicators have posted modest bounces within bearish territory, whilst the price is well below its 100 and 200 SMAs, in line with the shorter term outlook."