USD/JPY fades a spike to 120.50

By FXStreet FXStreet (Mumbai) – The US dollar managed to recover lost ground somewhat against the Japanese yen in the mid-European session, lifting USD/JPY to fresh highs near the mid-point of the 120 handle.

USD/JPY struggles ahead of the US CPI data

Currently, the USD/JPY pair trades modestly flat at 120.37, easing-off fresh session highs reached at 120.48 some minutes ago. The USD/JPY pair quickly recedes from highs and now trades muted awaiting fresh incentives from the upcoming US CPI figures.

As such, the US CPI numbers should not spur any higher volatility as they are unlikely to change Thursday’s FOMC decision.

Moreover, the dominating risk-on sentiment amid rallying global equities also boosted the sentiment towards the newly pronounced risk currency – the US dollar, thus lifting USD/JPY from the red.

USD/JPY Technical levels to consider

To the upside, the next resistance is located 120.67 (Sept 15 High) levels and above which it could extend 120.84 (Sept 14 High). To the downside immediate support might be located at 119.83 (Sept 14 Low) below that at 119.20 (Sept 2 Low).
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Source:: FX Street