USD/JPY looking for space on 121 handle for positive close

By FXStreet FXStreet (Guatemala) – USD/JPY has been a strong performer until the resisting forces of the 200 DMA at 120.80 and the advances through that level yesterday have been short-lived through the 20 DMA at 120.95 capped at 121.31 highs in London.

USD/JPY turned south in risk-off European trade and stabilized along the 200 SMA on the 15 minute sticks throughout the US session where risk also stabilized and supported the major. It is now very much a matter of the timings of a Fed hike as we move a little closer to the FOMC this month. The Yen is facing fundamental headwinds in respect to Global deflationary pressures and the BoJ’s easing policy as well. USD/JPY comes with a neutral outlook between 119.00 and 122.50 on the fundamentals.

USD/JPY levels

Technically, USD/JPY resistance is being reinforced by the 20 day ma at 120.95. The market has failed recently at the 61.8% retracement at 121.80 on the 20th August and below here keeps the major in neutral. To the downside, 118.33/25 are the March lows ahead of 116.15/115.85 2015 low and the recent low.
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Source:: FX Street