USD/JPY pair consolidates around 50-DMA

By FXStreet FXStreet (Mumbai) – The USD/JPY pair is now trading in the sideways manner around 50-DMA at 120.37 levels, after having suffered a sell-off in early Europe.

Back below weekly 50-MA

The spot also trades below its weekly 50-MA located at 120.57 levels. Japanese PM advisor Honda triggered a drop in the pair by stating there is no immediate need for more easing from the BOJ. The pair tested its 200-DMA at 120.94 earlier today.

Ahead in the day, the focus is likely to be on the activity in the US stock markets and US treasury yields.

USD/JPY Technical Levels

The immediate resistance is seen at 120.94 (200-DMA), above which the pair could target 121.32 (Sep 10 high). A break above the same would open doors for 121.97 (100-DMA). On the other side, a break below 119.81 (38.2% of 125.856-116.082) could push the pair lower to 119.00 levels.
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Source:: FX Street