USD/JPY back below 120

FXStreet (Mumbai) - USD/JPY retains most gains during the European markets, although retraced below 120 handle, as traders now turn focus towards BOJ’s monetary policy decision tomorrow amid a generalized strength in the US dollar.

USD/JPY supported above 50-DMA

Currently, the USD/JPY pair trades 0.28% higher at 119.88 levels, bouncing-off four-day highs at 120.06 levels. The USD/JPY pair snapped NFP backed losses and climbed higher, holding on to the 50-DMA support located at 119.81 levels. The upsurge in USD/JPY was largely driven by a strong recovery in the greenback against its major counterparts post NFP fall.

The yen continues to be exposed to downside risk versus the US dollar ahead of Bank of Japan’s (BOJ) monetary policy statement due tomorrow, which may further impetus to USD/JPY.

USD/JPY Technical Levels

To the upside, the next resistance is located at 120 levels and above which it could extend gains 120.34 levels. To the downside immediate support might be located at 119.22 (100-DMA) below that at 118.77 levels.

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