USD/JPY jumps back on the bids, regains 121 handle

By FXStreet FXStreet (Mumbai) – The US dollar recovered losses and now flipped into the green against its Japanese rival heading into mid-Asia, with USD/JPY finally regaining 121 handle.

USD/JPY ignores Asian markets sell-off, tests 5-DMA at 121.16

Currently, the USD/JPY pair trades modestly higher at fresh session highs of 121.13, having found renewed bids over last hours. After bottoming near 120.60 region in early Asia, the USD/JPY pair picked-up significant strength and turned positive on the back of a strengthening US dollar across the board on imminent Fed rate hike heading into Wednesday’s Fed decision. The US dollar index rises 0.25% to 97.85 levels.

Moreover, the major caught fresh bid tone this session, largely unperturbed by the persisting risk-off sentiment on the Asian stocks, with the Nikkei tanking -2.46%, Australia’s S&P/ASX down -1.31% and Hong Kong’s Hang Seng falling -1.84%. While the Japanese yen gave back upbeat Tankan indices-inspired gains, notwithstanding greenback strength.

Later today, nothing relevant in terms of economic news for the major and as such the sentiment backed by Wednesday’s Fed policy decision will drive markets.

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Source:: FX Street