USD/JPY drops further, 120.00 on sight?

By FXStreet FXStreet (Edinburgh) – The greenback keeps depreciating vs. the Japanese yen today, with USD/JPY now meandering the area of session lows near 120.20.

USD/JPY weaker on USD-selling

Spot has come under renewed selling pressure following a weaker tone in USD, dragged lower by another slump of crude oil prices, softer US Treasuries yields and the increasing bias towards the risk-off trade.

Data wise, US IBD/TIPP’s Business Optimism index has surpassed estimates, while the speech by BoJ’s H.Kuroda and Japan’s Consumer Confidence are due later in the Asian trading hours.

USD/JPY levels to watch

The pair is down 0.63% at 120.23 with the next support at 118.41 (20-day sma) followed by 117.78 (23.6% Fibo of 123.67-115.96) and finally 115.96 (low Jan.19). On the other hand, a breakout of 121.70 (high Jan.29) would target 121.85 (76.4% Fibo of 123.67-115.96) en route to 123.67 (high Dec.2).
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Source:: FX Street