USD/JPY back near 120.40, Yen halts its upsurge

By FXStreet FXStreet (Mumbai) – The USD/JPY pair recovered partial losses in the early moves, as the Japanese yen took a breather in its risk-off-inspired rally and consolidates ahead of the Europe open.

USD/JPY off 120.27 lows

Currently, the USD/JPY pair trades -0.15% lower at 120.41, bouncing-off fresh session lows struck at 120.27 in late-Asia. The Japanese yen trimmed gains versus the greenback after the Japan’s final industrial production figures came in worse than the preliminary estimate.

The combined production from Japan’s mines, manufacturers, and utilities fell 0.8% month-on-month in July, final data showed on Monday, coming in worse than the preliminary result of a 0.6% decline. It followed a 1.1% gain in industrial production in June.

However, the extension of risk-off moods into the European trading, keeps the yen bulls supported and the greenback broadly lower. Asian indices are also trading negative, with the Japan’s Nikkei losing -1.11% and the Shanghai Composite is down -3.47%.

Meanwhile, markets now await Tuesday’s BOJ rate decision for more cues on further QQE amid no significant data to be reported later today.

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 …read more

Source:: FX Street