I found the solution. I think Android Studio was using 2 java compilers, one built-in from android studio, and the other the one that I had installed in order to install Android Studio.
In Android Studio, On the menu File -> Project Structure : change the default JDK location directory to your own, in my case it was:
/usr/local/android-studio/jre
and I changed to
/usr/local/java/jdk1.8.0_111 #path_to_your_jdk
which is the version that I installed.
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