USD/JPY drops below 120.45 support, Nikkei off highs

By FXStreet FXStreet (Bali) – USD/JPY has taken a hit and has shifted its sentiment from bullish-dominated price action around 120.60/65 highs to be sold-off consistently since the Tokyo fix at 00.50 GMT.

Risk-off back? or just an intraday hiccup?

It looks as though the miss in Aus retail sales has apparently served as the perfect excuse enabling a snow-balling negative effect into Asian equities, well off highs, with the Nikkei around +1%, while the S&P futures are down by 0.1% after a stellar 35 points gain on Wednesday, following wild intraday swings.

USD/JPY technicals

USD/JPY has posted its lowest for the session at 120.33 after intraday trading strategies used the 120.45 support as resistance, and now key level to be re-taken if buyers at to regain the short term control in price action and the pre-dominant bullish tendencies from Wednesday. As per the downside prospects, acceptance below 120.45 should potentially expose a return towards the 120.00 level.
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Source:: FX Street