FXStreet (Mumbai) – The USD/JPY pair bounced-off lows ahead of hourly 200-SMA at 119.33 and rebounded sharply higher in early Europe, now heading towards 120 handle.
USD/JPY recovers nearly 40-pips in recent dealings
The Japanese yen halted its bullish run and shed more than half the gains against its American counterpart ahead of Europe open, as a turnaround in the risk conditions can be witnessed on the back of a minor oil price recovery. At the time of writing, the major trades -0.10% lower near fresh session highs of 119.85, recovering from a dip to 119.42, session lows.
Moreover, the yen ran through fresh offers as the European traders digest the latest comments by the BOJ Governor Kuroda delivered earlier on the day, with the central bank head noting that there remains “no limit to measures for monetary easing.”
Nothing of note for the major in the European session ahead and hence, focus now remains on a host of crucial US economic data, including the ADP report due for release in the NY session.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 119.92/120 (daily high/ round number). A break above the last, the major could test 120.22/59 (1h 100-SMA/ 5-DMA). While to the downside, the immediate support is seen at 119.34/29 (daily S1/ 1h 200-SMA) and below that at 119/118.84 (psychological levels/ daily S2).