USD/JPY: Yen bulls back in the game, drops to hourly 50-SMA

By FXStreet FXStreet (Mumbai) – The Japanese currency keeps pushing higher versus the US dollar in the European morning, extending recovery after four straight sessions of losses.

USD/JPY drops further from 120.32

Currently, the USD/JPY pair trades -0.23% lower at fresh session lows of 120.12, heading for a test of the hourly 200-SMA support located at 120.06. The USD/JPY pair met through fresh supply near 120.30 region in the recent dealing and dropped to fresh lows as the JPY bulls have jumped back into the bids as risk-aversion return to markets as the European indices drops amid poor economic news.

Whilst, the US dollar continues to be relentlessly offered across the board, as the weak US fundamentals raised worries over US economic prospects and pushed back Fed rate hike bets to early 2016.

Looking ahead, the major will be influenced by the prevalent risk-off sentiment while the upcoming US trade data due later today and tomorrow BOJ decision will be closely eyed.

USD/JPY Technical levels to consider

To the upside, the next resistance is located at 120.56-57 (Oct 5 and Today’s High) levels and above which it could extend 121.02 (Sept 17 High), above which the 200-DMA located at 121.38 holds key. To the downside …read more

Source:: FX Street