FXStreet (Córdoba) – USD/JPY peaked at 121.19 during the American session reaching the strongest level since September 1 and then made a modest pullback. Greenback is rising for the third day in a row against the Japanese currency, that once again is among the worst performers weakened by risk appetite.
USD/JPY consolidates near the highs, Wall Street erases gains
The rally of the pair lost strength as US stocks erased gains. Main stock indexes opened with gains of around 1% but now are just marginally higher. The Dow Jones is up only by 0.15% while the Nasdaq gains 0.17%. Treasury yield bonds are moving off session highs. The yen managed to stop the decline in the market, but still remains vulnerable.
The retreated from the highs found support at 120.85 and currently is trading around 121.00, more than a hundred pips above the level it closed yesterday. Since the beginning of the week it has risen 215 pips.
USD/JPY levels to watch
To the upside, resistance levels could be located 121.20 (daily high), 121.45 (Aug 21, 27 high) and 121.75 (Aug 28 high). On the opposite direction, support might lie at 120.75 (Sept 3 high), 120.15/20 and 119.65.
(Market News Provided by FXstreet)