FXStreet (Mumbai) – The USD/JPY pair extends its consolidative mode on the 120 handle in the mid-Asia, with the yen witnessing some fresh buying interest on the back of mixed Asian stocks as focus now shifts to the Bank of Japan (BOJ) policy decision due tomorrow.
USD/JPY retraces from 120.80 levels
Currently, the USD/JPY pair trades -0.13% lower at fresh session lows of 120.41, failing once again near 1.1280 region. The major erased early gains and now retraced to familiar range near the mid-point of 120 handle as the yen appears to garner some strength amid a cautious tone persisting across the financial markets, as traders continue to digest the recent series of poor Chinese macro data released over the weekend.
Moreover, with the major Asian indices in the red, the Asian traders prefer to hold the Japanese currency on increased safe-haven demand.
Later today, markets now await Japan’s revised industrial production data ahead of Tuesday’s BOJ rate decision with more cues awaited on further QQE.
USD/JPY Technical levels to consider
To the upside, the next resistance is located 120.84 (Today’s High) levels and above which it could extend 121.34 (Sept 10 High). To the downside immediate support might be located at 119.95 (Sept 10 Low) below that at 119.62 (Sept 3 Low).
(Market News Provided by FXstreet)