USD/JPY bounces-off lows, reverts to 120.40

By FXStreet FXStreet (Mumbai) – USD/JPY wiped out early losses and turned positive during the mid-European session, on persisting risk-on moods amid rallying European stocks which lifts the sentiment around the greenback.

USD/JPY stuck below 120.50

Currently, the USD/JPY pair trades almost unchanged at 120.36, recovering from a dip to fresh session lows struck at 120.22. The major extends its side-trend in the European session as the European traders shifted on the side-lines ahead of the ECB decision and Draghi’s presser.

The USD bulls fight hard to regain control as ongoing risk sentiment on the back of higher Asian and European indices continue to support the greenback versus the Japanese yen, as Chinese markets remain closed for a four-day break curbing the recent volatility.

Looking ahead, markets eye ECB meeting ahead of US trade balance and weekly jobless claims data for further incentives on the major.

USD/JPY Technical levels to consider

To the upside, the next resistance is located 120.70 (Today’s High) levels and above which it could extend gains 121.28 (Sept 1 High) levels. To the downside immediate support might be located at 120 (Psychological levels) below that at 119.20 (Sept 2 Low).
For more information, read our latest forex news. …read more

Source:: FX Street