USD/JPY on its way to 120.00?

By FXStreet FXStreet (Edinburgh) – The Japanese yen now intensifies its appreciation vs. the greenback, sending USD/JPY to the low-120.00s, or session troughs.

USD/JPY lower on risk-off sentiment

The pair is extending its initial downward pressure into the European open today, following the risk aversion environment emerged after the disappointing figures from the Chinese releases over the weekend.

In the data space, Japanese key Tertiary Industry Index rose 0.2% MoM during July, a tad lower than Junes 0.3% advance. Next of relevance will be the BoJ monetary policy meeting and Kuroda’s press conference due tomorrow, although market expectations for a different tone at the meeting are near zero.

USD/JPY levels to watch

As of writing the pair is losing 0.32% at 120.18 and a breakdown of 119.80 (low Sep.9) would aim for 118.58 (low Sep.4) and finally 118.45 (low Aug.25). On the flip side, the immediate resistance is located at 120.85 (high Sep.14) ahead of 121.33 (high Sep.10) and then 121.75 (high Aug.27).
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Source:: FX Street