USD/JPY bounces-off hourly 200-SMA

By FXStreet FXStreet (Mumbai) – The Japanese yen keeps pushing higher against its US dollar in the mid-European trades, knocking-off USD/JPY to fresh three-day lows in the close vicinity of the 120 handle.

USD/JPY recovers from 120.10 levels

Currently, the USD/JPY pair trades -0.36% lower at 120.18, retreating slightly from fresh session lows struck at 120.10 in last hours. The USD/JPY pair failed to resist 120.40 levels during early moves and extended the drop further, with the yen bulls now in complete control as European indices pare gains.

Moreover, the greenback remains weak across the board on the likelihood of the Fed not hiking rates this Wednesday. The US dollar index, a virtual gauge of greenback’s relative strength, now trades -0.09% lower at 95.30.

On the data space, 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.

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 …read more

Source:: FX Street