FXStreet (Mumbai) – The USD/JPY pair tries hard to remain on the bids in the mid-Asian session, with fresh offers coming in at hourly 100-SMA located at 120.58 on every attempt to the upside.
USD/JPY stuck around 120.50 levels
Currently, the USD/JPY pair trades modestly flat at 120.50, hovering above key support placed at 120.40 region, where the hourly 50-SMA and 5-DMA coincide. The major remains bid amid a better risk environment following a solid recovery in the commodities’ prices seen yesterday, which continues to underpin the demand for risk currencies such as the US dollar.
Moreover, USD/JPY shrugged-off upbeat US economic data released on Tuesday and kept the range-trade intact amid mixed US dollar and risk-on rally in the global equities. The US consumer sentiment improved in Dec while the US goods trade gap shrank marginally to $60.5 billion in Nov.
Looking ahead, no significant economic data for the major is due on the cards today, except for the US pending home sales, which may have negligible impact on the major against the backdrop of holiday-thinned trading.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 120.70 (10-DMA). A break above the last, the major could test 121 (round number). While to the downside, the immediate support is located at 120.24 (Dec 29 Low) below which 120.02 (Dec 25 Low) would be tested.
(Market News Provided by FXstreet)