USD/JPY extends beyond 119.00

FXStreet (Edinburgh) - The greenback is now gathering further traction vs. its Japanese counterpart on Tuesday, pushing USD/JPY to session tops around 119.40.

USD/JPY trims recent losses

After dipping to the 118.25/20 area today, the pair managed to pick up pace and recover the 119.00 handle and beyond, reclaiming ground lost after the recent pullback from the 120.20 tops posted last week.

Key session on Wednesday for both the dollar and the Japanese yen, as the BoJ will hold its monetary policy meeting and the FOMC will publish its minutes. Consensus expects the Bank of Japan to keep the status quo, whereas the FOMC release would be a more relevant driver for the pair.

USD/JPY levels to watch

The pair is now gaining 0.72% at 119.31 with the next resistance at 120.00 (psychological level) ahead of 120.48 9high Feb.11) and finally 120.68 (high Jan.5). On the downside, a break below 118.10 (61.8% of 116.64-120.48) would target 117.02 (low Feb.5) en route to 116.87 (low Feb.3).

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