USD/JPY: bears stacked up below 120.80 level

By FXStreet FXStreet (Guatemala) – USD/JPY has been moving within a sideways channel for the month, between 118.60 and 121.30.

Until there is anything more conclusive from the Fed, the major is a swing trade between these levels while uncertainty and risk-off continues to support the short side. With the Fed holding off, risk sentiment is back on and the Yen has given back the gains with broad dollar strength bursting through again while markets expect a rate hike before the year is out. This week is about the US data with Japan out for next few sessions.

USD/JPY levels

The market is offered while below the 120.80 200 DMA. Karen Jones, chief analyst at Commerzbank explained that they look for this to continue to cap the topside and we then look for a retest of 118.33/25 (March low) en route to the 116.15/115.85 2015 low and the recent low.
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Source:: FX Street