USD/JPY keeps highs near 120.40

FXStreet (Edinburgh) - The greenback remains on the right footing vs. the Japanese currency on Tuesday, lifting USD/JPY to 3-week tops near 120.40.

USD/JPY attention to the BoJ, FOMC

Key events ahead for the pair, as the BoJ will hold its monetary policy tomorrow followed by a press conference by Governor Kuroda and the Eco Watchers Survey. In the US, the FOMC minutes will take centre stage in an otherwise irrelevant docket, with markets bets hovering over a dovish tone, in line with the March meeting.

The US dollar is recovering ground lost and posting weekly gains for the first time after three consecutive weeks of losses, although the FOMC could prove to be critical for USD bulls in the medium term.

USD/JPY levels to consider

At the moment the pair is up 0.67% at 120.34 with the next resistance at 121.00 (psychological level) ahead of 121.20 (high Mar.20) and finally 121.41 (high Mar.18). On the flip side, a breakdown of 118.92 (cloud top) would open the door to 118.71 (low Apr.3) and then 118.33 (low Mar.26).

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